Annual Report 2023/24

MODERN BRITISH LUXURY
Burberry is a British luxury brand headquartered in
London with a longstanding commitment to quality,
innovation, creativity and responsible business.
Our brand is built on the principles of Thomas Burberry,
who founded the Company in 1856. With his inventionof gabardine in 1879, Thomas revolutionised outerwear
and opened opportunities for adventurers to explore
new spaces.
We continue that legacy today as we focus on bringing
our vision of Modern British Luxury to life.

Photograph by Lord LichfieldBurberry Annual Report 2023/24

Strategic Report
Chair’s Letter

Corporate Governance Statement
2

Chair’s Introduction

Chief Executive Officer’s Letter

4

Board of Directors

95

FY 2023/24 Highlights

6

Executive Committee

100

Corporate Governance Report101

Non-Financial Highlights
Inspired by Heritage, Embracing Modernity

8

British Design, Responsible Craftsmanship

10

Creatively Driven, Positive Impact

12

94

Division of Responsibilities
Governance Structure and Division of Responsibilities
Composition, Succession and Evaluation

Our Business Model

14

The Global Luxury Market in 2023

16

Report of the Nomination Committee

Our Strategy

18

Audit, Risk and Internal Control

Business Update

19

Financial Measures

22

Financial Review

24

Capital Allocation Framework

29

Environmental and Social Measures

30

Our Burberry Beyond Strategy

35

Product

37

Planet41

People48

107

Board Evaluation

111

Report of the Audit Committee

113
118

Remuneration
Directors’ Remuneration Report
Directors’ Report

125
143

Financial Statements
Statement of Directors’ Responsibilities

148
149
160

58

Independent Auditor’s Report to the Membersof Burberry Group plc

Sustainability Bond – Use of Proceeds Report

64Group Income Statement

Non-Financial and Sustainability Information Statement

65

Group Statement of Comprehensive Income

161

Task Force on Climate-related Financial Disclosures

66

Group Balance Sheet

162

Stakeholder Engagement

80

Group Statement of Changes in Equity

163

Risk and Viability Report

83

Group Statement of Cash Flows164

Viability Statement

91

Notes to the Financial Statements

165

Five-Year Summary

209

Company Balance Sheet

212

Communities

Company Statement of Changes in Equity

213

Notes to the Company Financial Statements

214

Shareholder Information

221

For further information, visit
Burberryplc.com

1

Burberry Annual Report 2023/24

Strategic Report | Chair’s Letter

STRONG PROGRESS TO ACHIEVEOUR AMBITIONS

Governance and Board matters
In the context of a more challenging macroeconomic
environment the Board is mindful, more than ever, of the needto operate within a robust governance framework. During theyear, I have spoken to investors on a variety of topics, including
strategy, capital allocation, board composition and environmental
and social matters. We have concentrated on improving
our governance disclosures within this Annual Report andI look forward to continued engagement with shareholders
in the coming year.
There have been a number of Board changes during FY 2023/24.
On behalf of the Board, I would like to thank Matthew Key,
who retired from the Board on 12 July 2023, for his service to
Burberry, including as Audit Committee Chair. We welcomed
Kate Ferry, who joined the Board as Chief Financial Officer
on 17 July 2023. Kate joined us from McLaren Group where,as Chief Financial Officer, she oversaw financial strategy
and investor relations.

Dear Shareholder,
It has been a challenging year. Since our CEO
Jonathan Akeroyd laid out his strategy to realise
Burberry’s potential as the Modern British Luxury
brand, there has been a slowdown in luxury demand
globally that has impacted our FY 2023/24 financial
results and made it harder to achieve our ambitions
as quickly as we would have liked.
Jonathan sets out in the following pages the progress
made in FY 2023/24 and his plans to adapt andevolve Burberry’s creative expression, collections
and customer experience to reflect market conditions
and our own recent learnings. The Board remains
confident that Burberry’s strategic direction is rightand that Jonathan and our executive team have thetalent, energy and plans in place to deliver Modern
British Luxury for all of our stakeholders.

2

It was also my pleasure to welcome Alessandra Cozzani who
joined the Board as an independent Non-Executive Director
on 1 September 2023. Alessandra previously served as Chief
Financial Officer of Prada Group SpA and her financial andluxury fashion expertise make her a valued addition to our
Board. Further information on Board recruitment and theinduction processes for Kate and Alessandra is provided
in the Nomination Committee Report on pages 113 to 117.
Finally, Debra Lee will retire as a Non-Executive Director
following the 2024 Annual General Meeting (AGM). Sincejoining the Board in October 2019, Debra’s insights and wise
counsel have helped influence how we do business. On behalfof the Board, I thank her for her valuable contribution to Burberry.

Shareholder returns
During FY 2023/24, we undertook a £400 million share buyback
programme and paid dividends of £233 million.
In accordance with our established Capital Allocation
Framework and progressive dividend policy, the Directors arepleased to recommend a final dividend of 42.7p per ordinary
share, making the full year dividend 61.0p, subject to approvalat the 2024 AGM. This is consistent with FY 2022/23,
representing a pay-out ratio of 83%, and reflects the Board’s
continued confidence in Burberry’s future growth,
notwithstanding current trading challenges.

Burberry Annual Report 2023/24“The Board remains confident that Burberry’s strategic direction
is right and that Jonathan and our executive team have the talent,energy and plans in place to deliver Modern British Luxury for allof our stakeholders.”

Looking ahead
As custodians of this extraordinary 168-year-old British brand,
we are committed to continuing to build on our founderThomas Burberry’s legacy. We are harnessing creativity to drive
responsible growth so that future generations can look backand be proud of the steps we are taking to drive long-termsustainable value, while making a positive contribution to ourpeople, our communities and our planet. Further informationon our Burberry Beyond sustainability strategy can be foundon pages 35 to 62.
With a shared vision of what it means to be the Modern British
Luxury brand, our colleagues across the world are building arich and exciting future for Burberry. I would like to thank themfor their passion and commitment over the past year. I would
also like to thank the Board and our shareholders for theircontinued support.

Gerry Murphy
Chair

3

Burberry Annual Report 2023/24

Strategic Report | Chief Executive Officer’s Letter

DELIVERING THE TRANSITION
TO MODERN BRITISH LUXURY“I am confident in our ability to successfully navigate this period andcontinue to leverage the unique attributes that make Burberry special
to achieve our growth ambition.”
FY 2023/24 performance
In terms of our financial performance in FY 2023/24:• Revenue was £2.97 billion, flat at constant exchange rates(CER) and down 4% on a reported basis• Adjusted operating profit was £418 million, down 25% at CER• Reported operating profit was £418 million, down 36%• Adjusted diluted earnings per share (EPS) was 73.9p, down
30% at CER• Reported diluted EPS was 73.9p, down 41%
Regionally, Europe, Middle East, India and Africa (EMEIA) andAsia Pacific grew in the full year at CER, while the Americas
continued to underperform. Tourism supported growth in Europe,
Japan and Southeast Asia, led by customers from Mainland China.

A new creative expression
We have a clear strategy to achieve our vision across brand,
product and distribution, supported by operational excellence,people and talent, values and sustainability. In the past
12 months, we have made advances in each of these areas.
Our brand is more focused, our offer is more elevated and wehave continued to strengthen our distribution, while delivering
operational improvements.

Dear Shareholder,
Over the past year, we have focused on executing
our plan to realise Burberry’s potential as the Modern
British Luxury brand. While the progress we havemade on our journey is not yet reflected in our results,
which underperformed our original expectations
for FY 2023/24, we have made advances, startingwith the launch of our new creative expression andbuilding to the delivery of Daniel Lee’s first collections.
Since September, we have seen a slowdown in luxury
demand globally. We are adapting to the additional
challenges that this presents while in a creativetransition. I am confident in our ability to successfully
navigate this period and continue to leverage theunique attributes that make Burberry special toachieve our growth ambition.

4

As we implement our strategy, we can see how customers are
responding to our new creative expression and importantly
where the opportunities are. We are using what we havelearned to fine-tune our approach, while adapting to theexternal environment.
Our British heritage is a position of strength and we areleveraging and reinterpreting this to give a more contemporary,
modern feel to our storytelling. Focusing on what makes us
unique is helping to clarify what we stand for in the minds ofconsumers. At the same time, we have amplified our messaging
through high-visibility activations, such as our takeover ofHarrods, which have driven awareness and consideration
among luxury consumers.
While we have received positive feedback from fashion insiders
about our new creative expression, we recognise the powerof the timeless, classic attributes that Burberry is known for
and we are refining our storytelling so it incorporates moreof these elements. We are also shifting the emphasis of ourcommunications to place more focus on building desirability
around our key categories. This is important not only in areasof strength, such as outerwear and softs, which outperformedin the year, but also in categories for which we are less wellknown, such as bags and shoes and where we see significant
opportunities for expansion.

Burberry Annual Report 2023/24“We have a clear strategy to achieve our vision across brand, productand distribution, supported by operational excellence, people andtalent, values and sustainability. In the past 12 months, we have madeadvances in each of these areas.”

Evolving our collections

Enabling delivery

Since Daniel’s debut collection, which landed in storesin September, we have started to evolve our collections.
Our seasonal fashion offer is now more elevated and relevant,and this is resonating with our top clients. We will build on thiswith our Winter 2024 collection, celebrating outerwear.

Operational excellence remains key. Over the past year, wehave reconfigured our supply chain to deliver our new elevatedoffer. We have also strengthened our internal manufacturing
capabilities with the acquisition and integration of a productdevelopment business from one of our longstanding technicalouterwear partners. We will continue to focus on delivering
process and technology improvements to support the business.

In parallel, we have begun to refresh our core offer with BurberryClassics, released in March. With this collection, we haveanimated the Burberry Check in new colourways across an editof essential wardrobe pieces that include items made with atleast 50% organic or recycled materials. The initial response
from customers has been very encouraging and we are excitedabout the opportunity here.
As Daniel grows in the role of Chief Creative Officer, we willcontinue to build a more balanced offer between seasonal
fashion and core collections, which are particularly important in
the current market environment. We will also continue to expand
our offer across categories so we can provide our clients witha full range of wardrobe staples.
We have invested significantly in the quality of our offer andin the choice of materials we are using, particularly in leather
goods. Our assortment of handbags is much more elevatedthan before with new image-driving shapes, such as the Knight
and Rocking Horse, which complement our existing core offer.
Building credibility in this area will take time, as it will in shoes
where we have started to establish a new, broader range.
I remain excited about our plans for both categories andconvinced of the opportunity.

Elevating the customer experience
Burberry has a well-established retail network in high-visibility
locations that we have continued to strengthen over the year,
including a new store on Avenue Montaigne in Paris and our
newly refurbished store in Ocean Centre in Hong Kong S.A.R.,
China. The majority of our stores are now new or refurbishedand continue to perform ahead of comparable stores in terms
of productivity. We will continue to roll out our programme thisyear, while increasing control of distribution in EMEIA to ensure
it reflects our elevated positioning.

I am proud that we have also continued to advance oursustainability agenda this year, particularly in the areas of
responsible sourcing, circular business models, net zero andinspiring young people. We are fully committed to building
on our momentum in this area in FY 2024/25.

Looking ahead
As we reflect on the past 12 months and look to the year
ahead, I would like to take this opportunity to thank my Burberrycolleagues for their continued passion and commitment. I also
want to thank our Burberry Board members for their support.
A huge amount of work has gone into operationalising our strategy
over the past year. We are fortunate to have such a strong andcomplementary team.
In the context of a still uncertain external environment, we
expect the first half of FY 2024/25 to remain challenging andthe benefit of the actions we are taking to start coming throughfrom the second half. We remain confident in our strategy andclear about our priorities, and we will continue to focus on
execution while staying agile.
Burberry remains an extraordinary brand and business witha unique position within the UK and the luxury industry globally.
We are committed to seizing the opportunities that lie ahead
to realise our potential as the Modern British Luxury brand.

Jonathan Akeroyd
Chief Executive Officer

E-commerce has been impacted by changes in consumer
behaviour, which have been widely reported across the sector.
We continue to believe that digital is an important part of theomnichannel journey and as such we are investing in elevating
the shopping experience on Burberry.com and in tools to
support our client advisors with remote selling.

5

Burberry Annual Report 2023/24

Strategic Report | FY 2023/24 Highlights

FY 2023/24 HIGHLIGHTS
Total revenue£2,968m(FY 2022/23: £3,094m)

Revenue by region (£m)

Revenue by channel (£m)

2023/ 24£m

2022/ 23£m

Asia Pacific239 stores

1,286

1,297

EMEIA
100 stores

1,017

1,004

Americas
83 stores

603

743

Revenue by product (£m)

2023/24£m

2022/ 23
£m

2,400

2,501

Wholesale506

Licensing62

Retail2023/24£m

2022/ 23£m

Accessories

1,055

1,125

543

Womenswear

860

867

50

Menswear842

868

Childrenswear
and other

149

184

Adjusted operating profit

Operating profit

Adjusted diluted EPS(2022/23: £634m)(2022/23: £657m)(2022/23: 122.5p)

£418m

£418m

73.9p

Diluted EPS

Dividend per share

Cash (net of overdrafts)*(2022/23: 126.3p)(2022/23: 61.0p)(2022/23: £961m)

73.9p

61.0p

* The Group also had borrowings at 30 March 2024 of £299m (1 April 2023: £298m).

6

£362m

Burberry Annual Report 2023/24

9,336Colleagues

422

Directly operated stores45.9^%

Reduction in scope 3 emissions froma FY 2018/19 base year55^%

Key raw materials in our products certified
or responsibly sourced in FY 2023/24(as defined in our Sustainable Raw
Materials Portfolio)

219,377

People positively impacted in FY 2023/24
through community programmes
supported by Burberry Group plc and
The Burberry Foundation^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

7

Synonymous with British style, the Burberry Heritage Trench Coat has
been a wardrobe staple for over a century and is a global fashion icon.

INSPIRED BY HERITAGE,EMBRACING MODERNITY
Explore more online

8

Burberry Annual Report 2023/24

With his invention of gabardine, Thomas
Burberry raised the bar for performanceouterwear. Weather resistant andbreathable, the fabric opened opportunities
for everyone from city dwellers to Arctic
adventurers to explore the outdoors.
A quintessentially British take on outerwear,
the Burberry Heritage Trench Coat is a global
fashion icon and emblematic of Burberry’s
positioning as the Modern British Luxury
brand. Classic styles are regularly reworked
and reinterpreted, reflecting the inspiration
we derive from our heritage.

Discover...
Our refocused brand storytelling
Page 19
Our elevated aesthetic across product categories
Page 20
Our strengthened distribution network
Page 219

We are proud of our British manufacturing heritage. Our products aredesigned with a focus on using certified and responsibly sourced materials.

BRITISH DESIGN,RESPONSIBLE CRAFTSMANSHIP
Explore more online

10

Burberry Annual Report 2023/24

Target for100%of key raw materials in
our products to be certified
or responsibly sourced
by FY 2029/30 (as definedin our Sustainable Raw
Materials Portfolio)

We are proud to continue ourfounder’s legacy of championing British
craft and production, and are focusedon manufacturing excellence.
We make products at Burberry‑owned
sites in the UK and Italy, as well as
in collaboration with a network ofglobal suppliers.
Over the last six years, we havealso acquired two businesses fromlongstanding suppliers to enhance our
in-house capabilities in leather goods
and technical outerwear. This allows
us even greater control over the quality,
delivery and sustainability of our products.

Discover...
Our commitment to responsible craftsmanshipPage 37
How we are embedding circular business models
Page 38
Our pledge to reach Net Zero by 2040
Page 4211

As a responsible business, we are committed to delivering sustainablelong-term value while playing a positive role in society.

CREATIVELY DRIVEN,
POSITIVE IMPACT
Explore more online

12

Burberry Annual Report 2023/24

Throughout its history, Burberry has been
inextricably linked to exploration of thegreat outdoors. The environment continues
to be our inspiration today, and we areplaying our part in protecting it for future
generations by factoring sustainability
considerations into our business decisions.
We uphold Thomas Burberry’s values byfostering creativity and championing British
artists and cultural institutions. His altruistic
legacy inspires the work of The BurberryFoundation and our Burberry Inspire youth
empowerment programme.

Target topositively impact

500,000
people between FY 2022/23
and FY 2025/26, particularly
young people hailing fromunderserved communities

Discover...
How we are evolving our culture
Page 49
How Burberry Inspire is helping young people to build
brighter futures
Page 59
Spark, Burberry’s volunteering and fundraising platform
Page 6113

Burberry Annual Report 2023/24

Strategic Report | Business Model

OUR BUSINESS MODEL
Inspired by the principles of our founder, Thomas Burberry, our purpose and values play an important rolein framing our business model and guiding how we operate.

Our purpose

Our values

We believe that Creativity Opens Spaces. The choices
we make as a Company and our long-term goals are shapedby our desire to harness creativity to open new opportunities
and effect change.

Our purpose is supported by four values which encompass
what we expect from ourselves and each other. We are
creatively driven, forward thinking, open and caring, andproud of our heritage.

Our business model is rooted in British craftsmanship

14

So
u

ke

el
l

S

We sell our products throughour network of directly
operated and franchised
stores, online and via
wholesale channels.
In special categories wework with licensing partners
to benefit from their productand distribution expertise.

ign

e
rc

We design products which
are elevated by our housecodes. Our teams collaborate
to innovate and deliver on ourcommon goals so that we
continually inspire anddelight our customers.

Des

We combine traditional craftsmanship and innovative manufacturing techniques to create desirable products. Our design teams
are based in London, where we are headquartered. We weave gabardine and make our Heritage Trench Coats at our mill and factoryin Yorkshire, UK. Our classic Burberry Check cashmere scarves are made in Scotland. We operate wholly-owned leather goods andtechnical outerwear centres of excellence in Italy, and we work with a network of global suppliers.

Ma

We work to responsibly
source materials of thehighest quality to makeproducts that will stand thetest of time. When making
business decisions, weconsider environmental
impacts and the wellbeingof everyone in our value chain,from our people to ourcommunities.

We continue our founder’slegacy of championing
British craft and production.
We manufacture our luxury
products at Burberry-owned
sites in the UK and Italy, andin partnership with a networkof global suppliers.

Burberry Annual Report 2023/24

Our heritage and our future are inspired by the natural world
Outfitting adventurers for a variety of experiences, climates and terrains is core to the Burberry story. Thomas Burberry’s inventionof gabardine revolutionised outerwear and opened opportunities for people to explore far-flung destinations as well as closer‑to‑homerural and urban spaces. We continue Thomas Burberry’s pioneering legacy today.

Purpose-driven people are key to our performance
We are an open and inclusive employer. We are guided by our purpose and values. Our people’s diversity of skills, backgrounds
and life experiences drive innovation within our business. We are proud that our colleagues represent 132 nationalities across
33 countries and territories.

We deliver value for all stakeholders while playing a positive role in society
Burberry represents Modern British Luxury to the world. We do this by designing and manufacturing beautiful products,
engaging our customers, challenging ourselves to be creative and continuing to be a sustainable and responsible
business. We listen to our stakeholders and innovate to create value for them.

Customers

Communities

We create unique and engaging
opportunities for our customers to explore
the world of Burberry and discover our
products. We build and reinforce connections
with our brand through memorable
experiences in-store and online.

We are committed to supporting local
communities where we operate, with aparticular focus on assisting young people
through the work of The Burberry Foundation.
Our global youth empowerment programme,
Burberry Inspire, works in partnership withlocal youth-focused organisations to create
opportunities for young people by unlocking
their creativity and amplifying their voices.

Shareholders
We aim to create sustainable long-termvalue for our shareholders. We allocate
capital by reinvesting for organic growth,
paying dividends through a progressive
policy, allocating capital to strategic
inorganic investments, and delivering
additional returns to shareholders.
For more information see our Capital
Allocation Framework on page 29.

PeopleEnvironment
Under the banner of our Burberry
Beyond strategy, we have set ambitious
science‑based targets to reach Net Zero by2040. We are working to reduce our impact
on the environment and protect nature.
Concurrently, we are building resilience
to environmental and social risks to ensure
the long-term success of our business.

Our people are our greatest asset and
we strive to provide a rich and rewarding
colleague experience. We aim to create
workplaces where our people can express
their creativity and feel a sense of belonging.
We seek to protect and enhance the livesof those in our supply chain, while respecting
and upholding human rights acrossour value chain.

15

Burberry Annual Report 2023/24

Strategic Report | The Global Luxury Market in 2023

THE GLOBAL LUXURY MARKET IN 2023
Burberry operates within the global personal luxury market, with a presence in over 140 countries
and territories1 around the world.
Below is an analysis of recent global market trends and performance for the year ending 31 December 2023.

The global personal luxury market reached €362 billion in 2023,
representing year-on-year growth of 8% at constant exchange
rates, and a deceleration from 15% growth in 2022. Growth rates
varied by region, with a slowdown occurring globally in thesecond half of the year.

Asia
Mainland China’s personal luxury goods market grew by 9%
in 20232. Japan was the fastest growing region in Asia at 17%.
This growth was attributed to the recovery of Chinese tourism
following severe disruption during the COVID-19 pandemic,
as well as a weakened yen. Excluding Mainland China andJapan, the rest of Asia grew by 8% compared to the previous
year. This can be attributed to tourism from Mainland China,
from which Hong Kong S.A.R., China, and Macau S.A.R., China,
benefited most. Southeast Asia, particularly hubs such as
Thailand, saw equally strong growth. Conversely, South Korea
showed a weakened performance due to macroeconomic
challenges and adverse tourism flows.

Product categories
Across the luxury market, all product categories recorded lowto mid-single-digit growth in 2023, slowing significantly fromthe previous year’s double-digit growth rate. Apparel grew 5%
to 6%. Leather goods grew by 3% to 4%, largely driven by priceincreases. Shoes grew 2% to 3%, impacted by the category’s
reliance on aspirational shoppers.

Channels and distribution
Following a robust performance in 2022, monobrand retailstores sustained growth of 11% in 2023, while online channel
sales fell by 5%. This was driven by growing customer desire forin-store experiences, increasing tourism across regions, and a
decline in spending by aspirational consumers who have agreater tendency to shop luxury online and to be affected bymacroeconomic uncertainty. Wholesale continued to lose
market penetration in 2023 as a result of consumers’ increasing
preference for direct-to-consumer channels.

Americas
In the Americas, the luxury market declined by 8% compared
to 2022. The decrease, which followed a strong performanceto the prior year, was primarily linked to cautious spending
behaviour locally amid an uncertain macro-environment.
Factors such as inflation and the depletion of pandemic savings,
exemplified by the end of COVID-19 USA government stimulus
check payments, played a significant role. While these factors
notably affected aspirational shoppers, the top customer
group remained resilient but directed their spending outside
the Americas.

Europe (including the UK) and the
Middle East
Europe’s luxury market recorded 7% growth compared to 2022.
Growth surged in the first half, propelled by a strong increase
in tourism across countries and territories, with tourism-linked
luxury spending, largely driven by American travellers, surpassing
pre-pandemic levels. The region faced a progressive slowdown
in the second half of the year, driven by a softening in local
consumer spending as a result of challenging macroeconomic
conditions. The UK continued to be impacted by the withdrawalof tax-free shopping and tourists diverting spending elsewhere.
The Middle East registered strong growth, driven by Dubai andthe growing relevance of Saudi Arabia as a destination for
luxury tourism expenditure.

1. Refers to number of countries and territories in which Burberry has a store presence or ships to directly and via partners.
2. All growth rates reported at current exchange rates, unless stated otherwise.
Source: Bain Altagamma Luxury Goods Worldwide Market Study, Fall 2023.

16

Burberry Annual Report 2023/24

Key trends
The personal luxury market’s performance was supported
by tourism spending, strong generational trends and resilientdemand from the top customer group. It was also bolsteredby solid fundamentals, such as continued product elevationand luxury brands’ power to inspire and engage customers.
The following key themes impacted the industry in 2023:

Multi-generational demand and prioritisationof high‑spending customers
The personal luxury market customer base continued to
expand across generations, spend levels and geographies.
Demographically, Gen Y (born between 1981 and 1996) drove
45% of spending in 2023 and is projected to remain dominant,while Gen Z (born between 1997 and 2012) held a 20% shareand is expected to grow rapidly to become the second largest
segment by 2030. Gen Z’s demand for impact and purpose
exceeds Gen Y’s pursuit of experiences and emotional
connections. By income bracket, high-spending customers are
increasingly taking share of the market, driven by the high-networth and ultra-high-net-worth population continuing to expand
its wealth. Acknowledging this trend, brands are embracing
multi‑generational segmentation, as well as having focusedclient strategies to appeal to high-spending customers.

Brand marketing with a new influencer playbook

Brands are forging deeper relationships with more authentic
content creators and leveraging short videos on social media
as customers, particularly Gen Z, seek relatable and entertaining
content beyond the product offer. In doing so, brands are
increasingly willing to relinquish a degree of creative control.

Price elevation alongside refined value proposition
The personal luxury market saw continued price elevation
across categories at both the entry and top end of the range,
while volumes also contracted. Brands are revisiting their value
propositions to cover the positioning gap and broadening theiroffers to ensure they have compelling entry-price products.
Having a tailored pricing approach will be key for brands serving
aspirational clientele, while also targeting the top customer
group, particularly as volume growth is set to weaken further.

Increasing urgency around sustainability and fasterpace of transformation
Brands continued to make progress in their sustainability
agendas. New regulations are coming into force spanning thewhole value chain, from sourcing and production to traceability
and end-of-life waste. Simultaneously, customers are demanding
more sustainable products. Addressing these needs requiresa shift towards greater supply chain transparency and due
diligence, the use of more sustainable materials, and embedding
sustainability targets across businesses.

In response to rising performance marketing costs and data
policies around customer targeting, brands are working to build
deeper emotional connections with their customers. To increase
engagement, they are leveraging the personalities behind theirbrands; telling stories that evoke their brand values; investing inexperiences; and collaborating with celebrities and influencers.

How Burberry is responding
In response to key market trends, Burberry is focused on:

Enhancingdesirability anddeepening ourconnection withour customers

Building out our
product offer,ensuring balance
between seasonaland core collections

Improving the retailstore experienceand focusing onconversion, whileelevating online

Improving
operational delivery
and driving
efficiencies

Progressing our
responsibility
commitments
through Burberry
BeyondFor more information see Our Strategy and Business Update sections on pages 18 to 21.
Source: McKinsey State of Fashion 2024.

17

Burberry Annual Report 2023/24

Strategic Report | Our Strategy

OUR STRATEGY
Our vision is to realise Burberry’s potential as the Modern British Luxury brand. We have a clear strategy
to achieve this across brand, product and distribution, supported by operational excellence, people and talent,and values and sustainability.

Modern British Luxury
Harness the powerof our brandBring all productcategories to full potential

Strengthen
distribution

Operations
Operational
excellence

People and talent

Values andsustainability

Our ambition is to grow annual revenue to £4 billion. Underpinning this, we have set targets to double
our leather goods sales, more than double shoe sales, double women’s ready-to-wear and grow outerwear
by 1.5 times. We also aim to improve store productivity to £25,000 per square metre per annum, and double
e-commerce sales, to reach ~15% retail penetration.

18

Burberry Annual Report 2023/24

BUSINESS UPDATE
Brand
Following the launch of our new creative expression in February
2023, we have focused on leveraging our Britishness andreinterpreting our heritage to give our storytelling a more
contemporary, modern feel.
Bringing to life our first end-to-end expression of Modern British
Luxury, our Winter 2023 campaign celebrated our connection
to the outdoors with a multicultural portrait of the British Isles.
Captured by Tyrone Lebon, imagery incorporated a distinctive
visual language and featured new and established house codes.
At the same time, we amplified our messaging and droveawareness and consideration through high-visibility activations
in key cities, including New York, Shanghai, Seoul and London.
Our series of city takeovers, Burberry Streets, celebrated thearrival of our Winter 2023 collection in stores and online with
an urban twist.
During the year, we have focused on what makes Burberry
unique, reinforcing our connection with Britishness and ourheritage of the outdoors. We held our Summer 2024 show
in a tent in Highbury Fields during London Fashion Week in
September 2023. The event helped amplify our brand visibility
and received positive press responses as well as good customer
engagement. Our Spring 2024 campaign focused on discovering
London’s urban landscape, underscoring our deep connection
with the city.
We explored Burberry’s connection with craftsmanship andnature with our Winter 2024 show, which was held at London’s
Victoria Park. The show told a cohesive story celebratingouterwear, and was very well attended by some of the most
exciting talent from the worlds of art, film, music and sport.

English garden flowers and summer fruits coloured our Summer
2024 campaign which put a summertime spin on outdoor living.
Set against a Caribbean backdrop, the collection referenced
Burberry’s British heritage as well as our icons which were
reimagined for the summer season.
We believe our British heritage is a position of strength and
we are building on this. We are refining our storytelling so
it incorporates more of the timeless, classic attributes that
Burberry is known for. We are also shifting the emphasis of ourcommunications to building desirability around our key productcategories now that we have introduced our new aesthetic.

FY 2024/25 Priorities
Enhance desirability and deepen the connection withour customers• Continue to refine brand expression, incorporating
more timeless, classic attributes in communications• Increase product focus in storytelling, withdedicated moments for key categories• Prioritise marketing investment in Mainland China
and the USA to strengthen brand visibility andconsumer engagement• Strengthen customer recruitment and engagement
through locally relevant campaigns and activations

Burberry turns Harrods Knight BlueIn February 2024, we staged a takeover of Harrods to mark the department
store’s 175th anniversary. The event saw the storied building illuminated in
Burberry’s Knight Blue hue and its signature green canopies replaced with
tent-inspired awnings in a seasonal Burberry Check. The traditional green
uniforms of the store’s famed doormen were redesigned to feature a KnightBlue Burberry Check, too.
To highlight Burberry’s heritage of exploration and links to the outdoors,
camping equipment featured in the department store’s windows and a BurberryCamping Corner offered hiking accessories, including an exclusive water bottle
and a limited-edition orienteering map of the surrounding Knightsbridge
neighbourhood. A Burberry food truck offered a menu of British pastries
and hot drinks, while a picnic area featured benches in Knight Blue.
A dedicated rainwear space showcased Burberry trench coats and offeredinsights into our brand’s heritage, while pop-up spaces housed a limited‑edition
capsule collection, which included womenswear, menswear and childrenswear
pieces, as well as accessories.
An in-store digital experience offered a new way to interact with Burberry, while
an online take on the event was accessible via the multiplayer game Roblox.

19

Burberry Annual Report 2023/24

Strategic Report | Business Update

Product
During FY 2023/24, we started to evolve our collections in linewith our new creative vision.
Our seasonal offer is now more elevated and relevant and thisis resonating with our top clients.
We have also begun to reinvigorate our larger, core offer.
In March, we released Burberry Classics, an edit of essential
wardrobe pieces animating the Burberry Check in new colourways.
The collection includes pieces made with at least 50% organicor recycled materials. We are excited about the opportunity here.
In outerwear, we have a strong foundation in heritage
rainwear that continues to attract customers to the brand.
We continue to build on this momentum with new shapes andfabrics. We have also introduced more diversity into our offerwith coats and jackets.
We dressed VIPs and brand ambassadors in Heritage Trench
Coats and new styles at our Summer 2024 and Winter 2024shows. We also launched a new exclusive scarf and Trenchcollection in partnership with Highgrove. The collection features
illustrations of Highgrove Gardens which surround the private
residence of His Majesty King Charles III and Queen Camilla.

FY 2024/25 Priorities
Build out our product offer, ensuring balance between
seasonal and core collections

In ready-to-wear, we have refined and elevated our seasonaloffer, including introducing a stronger feminine aesthetic.
We have also begun to evolve our assortment across pricepoints, particularly in Men’s, and are rebuilding our jersey offer.
Our focus is on building a complete everyday assortment
across ready-to-wear.
We have invested significantly in the quality of our offer andin the choice of materials we are using, particularly in leather
goods, which performed broadly in line with the Group average.
We have introduced new image-driving shapes, including theKnight and Rocking Horse, which complement our existing coreoffer. We also continued to support the Burberry Check.
Scarves are an area of strength. We have a good cashmere
offer that continues to attract customers to the brand. We havere-energised the assortment with new colours and fabrics,
while expanding our fashion offer.
In shoes, we have started to develop a more complete offer
across functions which complements our ready-to-wearcollections and gives us the opportunity to provide our clientswith a full range of wardrobe staples. As part of our Winter 2023
collection, we partnered with Northampton, England-based
shoemaker Tricker’s to create an exclusive collectionof traditionally crafted footwear.
During the year, we also launched our latest fragrance Burberry
Goddess, which has been highly successful.

• Build on outerwear category strengths• Develop full product offer in ready-to-wear• Balance assortment and increase visibility
in communications for bags
• Expand softs category with focus on functions,fabrics and colour• Continue to develop shoe offer

Outerwear layers heritage and modernity
Our new creative vision for Burberry has focused on elevating outerwear through evolutions
in cuts, the incorporation of performance fabrics and craftsmanship. Classic pieces arereinterpreted with new takes on shapes and textiles to create the iconic looks of tomorrow.
Trench coats, duffle coats and field jackets are reworked to feature tactile fabrics, including
moleskin, shearling and fleecy wool, while traditional craft techniques from the British Isles
are a nod to Burberry’s long-held tradition of championing craftsmanship. House codes,
including the Equestrian Knight Design and Burberry Check, are revisited and reinterpreted
in new and surprising ways. The approach has struck a chord with existing Burberry
customers while also appealing to new audiences.

20

Burberry Annual Report 2023/24

Distribution

Operations

In terms of distribution, we enhanced and elevated the customer
experience in-store and online.

To support our strategic priorities, we continued to deliver
operational improvements.

We have a well-established network of stores in high-visibility
locations, which we have continued to strengthen. The majorityof our stores, including most of our flagships, are now newor refurbished. We opened a new store on Avenue Montaigne
in Paris in early 2024, and reopened refurbished stores in
New Bond Street, London and Ocean Centre, Hong Kong S.A.R.,
China. Our new and refurbished stores continue to perform
ahead of comparable stores in terms of productivity.

During the year, we reconfigured our supply chain to deliver
our new elevated offer, and improved product availability across
our core replenishment lines. We have also strengthened ourinternal manufacturing capabilities with the acquisition andintegration of a product development business from technicalouterwear partner Pattern SpA.

We have begun to elevate the shopping experience on
Burberry.com. The site reflects our new brand aesthetic and has
a greater focus on product with an improved customer journey.
We continue to invest in enhancing our omnichannel capabilities
and personalising the shopping experience for our customers.

FY 2024/25 Priorities
Enhance retail store experience, focus on conversion
and elevate online experience• Continue to deliver store refurbishment programme• Strengthen visual merchandising in store• Focus on clienteling and styling• Maximise commercial opportunity for Burberry.com
and expand omnichannel capabilities• Rationalise wholesale channel with focus on EMEIA

From a sustainability point of view, we continued to make strong
progress against our commitments across responsible sourcing,
circular business models, net zero and inspiring young people.
We have evolved our refresh and repair aftercare services anddeveloped new circular business models, including our partnershipwith Vestiaire Collective, enabling our customers to trade-in
their pre-loved Burberry pieces. We have also developed
plastic-free consumer packaging and launched our BurberryClassics collection, continuing responsibly sourced materials.
We continued our efforts to positively impact the lives of young
people through dedicated programmes, such as Burberry
Inspire and the Thomas Burberry Prize for Print, as well as
partnerships with The BRIT School, Save the Children and the
Evening Standard Winter Survival Appeal. We also partneredwith Tate Britain to support artist Sarah Lucas on projects
celebrating British arts and culture.
Read more about our responsibility commitments
on pages 35 to 62.

FY 2024/25 Priorities
Continued focus on operational delivery andcommitment to sustainability• Unlock speed and elevate customer experience
with focus on strategic categories• Drive cost efficiencies• Deliver process and technology improvements• Maintain pace of delivering our sustainability targets

21

Burberry Annual Report 2023/24

Strategic Report | Key performance indicators

FINANCIAL MEASURES
Revenue growth*Comparable sales growth*

Adjusted operating
profit growth*This measures the appeal of the
Burberry brand to customers throughall of our sales channels.

This measures the growth inproductivity of existing stores. It is
calculated as the annual percentage
increase in sales from retail storesthat have been open for more than
12 months. It is adjusted for permanent
closures and refurbishments, andincludes all digital revenue.

This measure tracks our ongoing
operating profitability and reflects the
combination of revenue growth andcost management.

CER Comparable store
sales growth %CER Adjusted operating
profit growth %Measured by
CER Revenue growth %

flat

-1%

2024

-25%

2024
£2,968m

flat

2023

2024
-1%

2023
£3,094m

+5%

2022
+23%

2021

£634m

-10%

+8%

2022
£523m

+18%
2021

£2,344m

-25%

2023
+7%

2022
£2,826m

£418m

+38%

2021
-9%

£396m

-8%

Performance
FY 2023/24 revenue was flat atconstant exchange rates.

FY 2023/24 comparable sales
decreased by 1% in the year.

* At constant exchange rates and adjusted for the 53rd week in FY 2021/22.

Details of alternative performance measures are shown on pages 27 and 28.

22

Adjusted operating profit in FY 2023/24
decreased by 25% at constantexchange rates. This was as a resultof the investment in product cost andincreases in operating costs from thestore refurbishment programme.

Burberry Annual Report 2023/24

Adjusted operating profit margin

Adjusted diluted EPS growth

Adjusted Group ROICThis measures how we drive operational
leverage and disciplined cost control,with thoughtful investment for future
growth building the long-term valueof the brand.

Growth in adjusted diluted EPS reflects
the increase in profitability of thebusiness, movement in the tax rateand share repurchase accretion.

Adjusted Group ROIC measuresthe efficient use of capital on
investments. It is calculated as thepost-tax adjusted Group operating
profit divided by average adjusted
operating assets over the period.

Adjusted diluted EPS growth %Adjusted Group ROIC %Measured by
Adjusted operating
profit margin %

14.1%

-40%

2024

15.3%

2024
14.1%

2024
-40%

73.9p

2023

2023

2023

20.5%
2022

122.5p

+30%

2022
+40%

2021
16.9%

28.6%
2022

94.0p

18.5%
2021

15.3%

24.6%
2021

67.3p

-14%

17.0%

Performance
Adjusted operating profit margin
declined by 640 bps which was 500
bps at constant exchange rates as aresult of a reduction of 170 bps in grossmargin at constant exchange rates
following increased stock provisions
and investment in product and anincrease in net operating expenses of
7% at constant exchange rates.

Adjusted diluted EPS decreased by
40% year-on-year, due to the reductionin adjusted operating profit, theincrease in the tax rate partially offset
by the accretion from the sharebuyback.

Adjusted Group ROIC decreased to
15.3%, mainly due to the decrease inadjusted operating profit and theincrease in tax rate. Average operating
assets increased by 12%.

23

Burberry Annual Report 2023/24

Strategic Report | Financial review

FINANCIAL REVIEWOur financial performance in the year reflected the challenges of implementing a creative transition against
a backdrop of slowing luxury demand. In spite of this, good progress was made on refining our brand image,evolving our product and strengthening distribution.
The performance metrics and commentary included in the Financial Review exclude adjusting items unless stated otherwise.
The alternative performance measures presented in this section include: CER, adjusted profit measures, comparable sales,
free cash flow, cash conversion, adjusted EBITDA and net debt. The definitions of these alternative performance measures
are on pages 27 and 28.

Revenue• Revenue of £2,968
million was flat to theprior year at constantexchange rates andfell -4% on a reported
basis with comparable
store sales fell -1%• Outerwear up 8%, led
by heritage rainwear

Adjusted
operating profit• Adjusted operating
profit of £418 million
decreased 25% atconstant exchange
rates and 34% on
a reported basis due
to a combinationof increased stockprovisions andinvestment in productand an increase inproperty costs fromincreased
depreciation from therefurbishment
programme andincreased right of use
assets partially offset
by disciplined cost
control• Adjusted operating
margin of 14.1%
decreased 500 bps atconstant exchange
rates and 640 bps ona reported basis in linewith thisSummary income statement
52 weeks
ended
30 March 2024

52 weeks
ended
1 April 2023

YoY % change
Reported FX

YoY % change
CER

Revenue

2,968

3,094

(4)

flat

Cost of sales*

(959)

(912)

5

6

Gross profit*

2,009

2,182

(8)

(3)
(170 bps)

Period ended£ million

Gross margin*

67.7%

70.5%

(280 bps)

Net operating expenses*(1,591)(1,548)3

7

Net opex as a % of sales*

53.6%

50.0%

360 bps

330 bps

Adjusted operating profit*

418

634

(34)

(25)

14.1%

20.5%

(640 bps)(500 bps)–

23

Adjusted operating profit margin*
Adjusting operating items
Operating profit
Operating profit margin

418

657

(36)

14.1%

21.2%

(710 bps)

Net finance charge**

(35)

(23)

52

Profit before taxation

383

634

(40)

Taxation

(112)

(142)

(21)

(1)

(2)

270

490

Non-controlling interest
Attributable profit(45)

Adjusted profit before taxation*

383

613

(37)

(28)

Adjusted diluted EPS (pence)*

73.9

122.5

(40)

(30)

Diluted EPS (pence)

73.9

126.3

(41)

366.2

388.0

(6)

Weighted average number of diluted
ordinary shares (millions)* Excludes adjusting items. All items below adjusting operating items on a reported basis unless otherwise stated.
For detail, see note 6 of the Financial Statements.
** Includes adjusting finance charge of £nil (FY23: £2m).

Financial Performance
Revenue by channel
52 weeks
ended
30 March 2024

52 weeks
ended
1 April 2023

YoY % change
Reported FX

YoY % change
CER

2,400

2,501

(4)

1

-1%

7%

Wholesale

506

543

(7)

(5)

Licensing

62

50

23

23

Revenue

2,968

3,094

(4)

flat

Period ended£ million

RetailComparable store sales growth24Burberry Annual Report 2023/24

Retail• Comparable store sales decreased -1% with a strong 10%
first half growth more than offset by a decline of 8% in thesecond half
• Space increased 2% leading to total retail revenue growthof 1% at constant exchange rates• Retail revenue fell -4% on a reported basis following
a headwind from foreign exchange

Comparable store analysis by region
Asia PacificAsia Pacific comparable store sales grew +3% in the year.
The fourth quarter fell -17% on tough comparatives with local
customers challenged across the region• Mainland China comparable store sales increased +2%
in the year and fell -19% in the fourth quarter. The Mainland
Chinese customer group fell -12% in the fourth quarter with
tourism accounting for almost a quarter of the customer
group sales globally• South Korea fell -8% in the year and -17% in the fourth quarterwith South Koreans purchasing abroad up double-digit
percentage, with tourist spend mainly in EMEIA and Japan• Japan saw strong comparable store sales growth up +25%
in the year and +18% in the fourth quarter• South Asia Pacific rose +4% in the year with a slowdown in
the last quarter to -24% driven by a declining local customer
not fully offset by tourist spend

EMEIA
EMEIA saw comparable store sales up +4% in the year but down
-3% in the fourth quarter.
• The region benefited from strong tourist growth but withsome pressure from local consumer spending

Americas• Americas fell -12% both in the year and in the fourth quarter
where we are continuing to see a relatively broad-based
decline in the region across our local customers

Comparable store analysis by productBy product, luxury customers continued to gravitate towards
categories for which we are known.
• We saw a very strong performance from our outerwear
that grew by a high single digit percentage in the year,
led by Heritage rainwear• Scarves also performed well, up a double digit percentage
in the year.
• Leather goods performed broadly in line with the groupaverage with a better performance from bags, while smallleather goods were slower as we developed the category• Ready-to-wear for both men’s and women’s were below
the group average, declining by a mid singe digit percentage
in the year.

Store footprint
The transformation of our distribution network continued
during the year taking over 50% of the network now upgradedto the refurbished concept.
• We opened 22 full price stores, closed 14 stores with 2 outlets
opened and 2 closed• Including refurbishments, we increased the numberof updated stores by 79• Most of our key doors are now new or refurbished including
our new store on Avenue Montaigne in Paris and the newly
refurbished store in Ocean Centre, Hong Kong S.A.R., China• We now have over 50% of the network completed and plan tofinish the roll out by FY27

Wholesale• Wholesale revenue decreased -5% at constant exchange
rates (-7% at reported rates) due to pressure in the Americas

Licensing• Licensing revenue grew 23% at both constant exchange rates
and reported exchange rates supported by the launch of ourlatest fragrance, Burberry Goddess

Operating profit analysis
Adjusted operating profit
Period ended£ million

52 weeks
ended
30 March
2024

52 weeks
ended
1 April2023

YoY %changeReported FX

YoY %change
CER

Revenue

2,968

3,094

(4)

flat

Cost of sales*

(959)

(912)

5

6

Gross profit*

2,009

2,182

(8)

(3)

Gross margin %*

67.7%

70.5%

(280 bps)(170 bps)

Net operating
expenses*(1,591)(1,548)3

7

Net operating
expenses as a %of sales*

53.6%

50.0%

360 bps

330 bps

Adjusted
operating profit*

418

634

(34)

(25)

Adjusted
operating profit
margin %*

14.1%

20.5%

(640 bps) (500 bps)

* Excludes adjusting items.

Adjusted operating profit declined 25% at constant exchange
rates and 34% reported with the margin down -500 bps and-640 bps respectively:• The gross margin was 67.7%, a decrease of 170 bps atconstant exchange rates and 280 bps at reported exchange
rates following increased stock provisions and investment inproduct that was not fully offset by pricing. The impact related
to regional and channel mix effects and a benefit fromtransportation costs broadly netted-off.

25

Burberry Annual Report 2023/24

Strategic Report | Financial review• Adjusted net operating expenses rose by +7% at constantexchange rates and +3% at reported exchange rates primarily
due to property costs from increased depreciation andamortisation on the refurbishment programme, impairments,
rent increases and utility cost increases partially offset
by disciplined cost control• Reported adjusted operating profit was £418m, includinga £60m foreign exchange headwind in the year, achieving
a reported adjusted operating margin of 14.1%

Adjusting items*
There were no adjusting items in the current year (FY23: £21m
net credit).
Period ended£ million

52 weeks
ended
30 March
2024

52 weeks
ended
1 April
2023

The impact of COVID-19

Cash flow and leverage
Summary statement of cash flows
The following table is a representation of the cash flows,
excluding financing cash flows to align with our definitionof free cash flow.
52 weeks
ended
30 March
2024

52 weeks
ended
1 April
2023

Adjusted operating profit

418

634

Depreciation and amortisation

379

344

Working capital

(166)

(76)

Other including adjusting items

34

10

Cash generated from operating
activities

Period ended£ million

665

912

Payment of lease principal and related
cash flows

(235)

(210)

Capital expenditure

(208)

(179)

Inventory provisions–

1

Rent concessions–

13

Store impairments–

6

Government grants–

2

Proceeds from disposal of non-current
assets–32

COVID-19 adjusting items**–

22Interest

(20)

(22)

Restructuring costs

–

(16)

Tax

(139)

(140)

Profit on sale of property–

19Free cash flow

63

393

Revaluation of deferred consideration
liability–(2)Free cash inflow* was £63m in the year (FY23: £393m).

Adjusting operating items–

23

The major components were:Adjusting financing items–(2)

Adjusting items–

21• Cash generated from operating activities decreasedby £247m to £665m from £912m primarily due to a £216m
reduction in adjusted operating profit and a working capitaloutflow of £166m, £90m greater outflow compared with lastyear (FY23: £76m outflow) mainly due to higher inventory
following weaker than expected sell through.
• Capital expenditure of £208m (FY23: £179m) as we continued
to prioritise store refurbishments• Proceeds from disposal of non-current assets were £nil
(FY23: £32m from the disposal of owned property)• Tax cash of £139m, a decrease of £1m compared to theprior year with lower profitability offset by the higher UK
corporation tax rate

* For more details see note 6 of the Financial Statements.
** Includes £nil (FY23: £1m credit) that has been recognised through COGS.

The key adjusting items in the prior year are as follows:• Total credit of £22m from COVID-19-related adjusting items• £16m of restructuring costs• Net £19m profit on the sale of an owned property in the USA

Adjusted profit before tax*
After an adjusted net finance charge of £35m (FY23: £21m),
adjusted profit before tax was £383m (FY23: £613m).
* For detail on adjusting items see note 6 of the Financial Statements.

Taxation*
The effective tax rate on adjusted profit increased to 29.2%(FY23: 22.2%) primarily due to the increase in the UK corporation
tax rate. The reported tax rate on profit before taxation was
also 29.2% (FY23: 22.4%).
* For detail see note 9 of the Financial Statements.

Cash net of overdrafts on 30 March 2024 was £362m
compared to £961m on 1 April 2023. On 30 March 2024,
borrowings were £299m from the bond issue leaving cash net
of overdrafts and borrowings of £63m (1 April 2023: £663m).
With lease liabilities of £1,188m, net debt in the period was£1,125m (1 April 2023: £460m). Net Debt/Adjusted EBITDA was
1.4x, above our target range of 0.5x to 1.0x. The increasein leverage from 0.5x at 1 April 2023 has been driven by thelower profitability, working capital outflow and the sharebuyback programme.

Total tax contribution
The Group makes a significant economic contribution to thecountries and territories where it operates through taxation
either borne by the Group or collected on behalf of and paid tothe relevant tax authorities. In FY 2023/24, the total taxes borne
and collected globally by the Group amounted to £529 million.
In the UK, where the Group is headquartered and has significant
operations, Burberry paid business taxes of £157 million andcollected a further £66 million of taxes on behalf of the UK
Exchequer. For further information see Burberryplc.com.

Period ended£ million

52 weeks
ended
30 March
2024

Adjusted EBITDA – rolling 12 months

797

975

Cash net of overdrafts

(362)

(961)

Bond

299

298

Lease debt

1,188

1,123

Net Debt*

1,125

460

Net Debt/Adjusted EBITDA

1.4x

0.5x

* For a definition of free cash flow and net debt see page 28.

26

52 weeks
ended
1 April2023

Burberry Annual Report 2023/24

OutlookStore portfolio

In the year ahead, we will focus on deepening the connection
with our customers as we execute our priorities acrossbrand, product and distribution. We will continue to balance
investment in consumer‑facing areas with disciplined cost
control to support our growth ambition. In the context of astill uncertain external environment, we expect retail space tobe broadly stable with capex expected to be around£150 million in FY25. We have retained the proposed dividend
for the current year in line with the capital allocation policy.

Directly-operated stores
StoresConcessions

Outlets

Total

Franchise
storesAt 1 April 2023

219

138

56

413

35

Additions

22

8

2

32

1

Closures

(14)

(7)

(2)

(23)

(3)

At 30 March 2024

227

139

56

422

33

Franchise
storesStore portfolio by region*

Based on foreign exchange rates effective as of 25 April 2024,
we now expect a currency headwind of around £30m to revenue
and around £20m to adjusted operating profit in FY25.

Directly-operated stores
At 30 March 2024

StoresConcessions

Outlets

Total

Asia Pacific

122

94

23

239

9

EMEIA

46

36

18

100

24

Americas

59

9

15

83

–

Total

227

139

56

422

33

* Excludes the impact of pop-up stores.

Alternative performance measures
Alternative performance measures (APMs) are non-GAAP measures. The Board uses the following APMs to describe the Group’s
financial performance and for internal budgeting, performance monitoring, management remuneration target setting and externalreporting purposes.

APM

Description and purpose

GAAP measure reconciled toConstant
Exchange
Rates (CER)This measure removes the effect ofchanges in exchange rates compared tothe prior period. The constant exchange
rate incorporates both the impact of the
movement in exchange rates on thetranslation of overseas subsidiaries’
results and also on foreign currency
procurement and sales through theGroup’s UK supply chain.

Results at reported rates

Comparable
Sales

The year-on-year change in sales fromstores trading over equivalent time
periods and measured at constantforeign exchange rates. It also includes
online sales. This measure is used tostrip out the impact of permanent store
openings and closings, or those closuresrelating to refurbishments, allowing
a comparison of equivalent store
performance against the prior period.

Retail Revenue:

Adjusted profit measures are presented
to provide additional considerationof the underlying performance of theGroup’s ongoing business. These
measures remove the impact of those
items which should be excluded toprovide a consistent and comparable
view of performance.

Reported Profit:

Adjusted Profit

Period ended YoY%

52 weeks ended
30 March 2024

52 weeks ended
1 April 2023

Comparable sales

(1%)

7%

Change in space

2%

(1%)

CER retail1%

6%

53rd week

–

(2%)

FX

(5%)

6%

Retail revenue

(4%)

10%

A reconciliation of reported profit before tax to adjusted profit
before tax and the Group’s accounting policy for adjusted profit
before tax are set out in the financial statements.

27

Burberry Annual Report 2023/24

Strategic Report | Financial review

APM

Description and purpose

GAAP measure reconciled toFree Cash Flow

Free cash flow is defined as net cash
generated from operating activities lesscapital expenditure plus cash inflows
from disposal of fixed assets andincluding cash outflows for leaseprincipal payments and other lease
related items.

Net cash generated from operating activities:

Cash
Conversion

Net Debt

Cash conversion is defined as free cash
flow pre-tax/adjusted profit before tax.
It provides a measure of the Group’s
effectiveness in converting its profit
into cash.

Net debt is defined as the lease liability
recognised on the balance sheet plus
borrowings less cash net of overdrafts.

Period ended £m

506

750

Capex

(208)

(179)

Lease principal and related
cash flows

(235)

(210)

Proceeds from disposalof non‑current assets–

32

Free cash flow

63

393

52 weeks ended
30 March 2024

52 weeks ended
1 April 2023

Free cash flow

63

393

Tax paid

139

140

Free cash flow before tax

202

533

Net cash generated from operating activities:
Period ended £m

Adjusted profit before tax

383

613

Cash conversion

53%

87%

As at
30 March 2024

As at
1 April 2023

Cash net of overdrafts:
Period ended £mLease liability

Adjusted EBITDA is defined as operating
profit, excluding adjusting operating
items, depreciation of property, plantand equipment, depreciation of right ofuse assets and amortisation of intangible
assets. Any depreciation or amortisation
included in adjusting operating items are
not double counted. Adjusted EBITDA
is shown for the calculation of Net Debt/
EBITDA for our leverage ratios.

362

961

(1,188)(1,123)

Borrowings

(299)

(298)

Net debt(1,125)(460)

Reconciliation from operating profit to adjusted EBITDA:
Period ended £m

52 weeks ended
30 March 2024

52 weeks ended
1 April 2023

418

657

Adjusting operating items

–

(23)

Amortisation of intangible assets

42

37

Operating profit

Depreciation of property,
plant and equipment

103

95

Depreciation of right-of-use assets*

234

209

Adjusted EBITDA

797

975

* Excludes £nil depreciation on right-of-use assets included in adjusting items (FY23: £3m).

28

52 weeks ended
1 April 2023

Net cash generated fromoperating activities

Cash net of overdrafts

Adjusted
EBITDA

52 weeks ended
30 March 2024

Burberry Annual Report 2023/24

Strategic Report | Capital Allocation Framework

CAPITAL ALLOCATION FRAMEWORKOur strategy and targets are governed by our Capital
Allocation Framework, which we use to prioritise the useof cash. This framework addresses the investment needs ofthe business, regular dividend payments and additional returns
to shareholders. The framework also seeks to maintain an
appropriate capital structure for the business and a strong
balance sheet with a solid investment grade credit rating.

1

2

Net Debt/Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortisation (EBITDA) was 1.4x at FY 2023/24(FY 2022/23: 0.5x) on a rolling 12-month period, above ourtarget range of 0.5x to 1.0x. We continue to be a cash generative
business and are comfortable with this current leverage position
which is consistent with our policy to maintain an investment
grade credit rating as we go through our creative transition.
The diagram below summarises the key priorities of our framework.

3

4

Reinvest fororganic growth

Progressive
dividend policy

Inorganic strategic
investment

Return excess cash
to shareholders

Capital spend across store
portfolio, including new
spaces and refurbishments;
IT infrastructure, including
digital; and the supply chain.
Spend includes investment
in Environmental, Socialand Governance initiatives,
for example, costs incurredin meeting our Sustainability
Bond use of proceeds
commitments set out
on page 64.

The absolute amountof dividend per share willremain stable or increaseon a full-year basis, broadly
targeting a pay-out of around
50% of adjusted earnings
per share at reported rates
of exchange. The interim
dividend pay-out is 30%of the absolute value of theprior year full-year dividend.

Investment in acquisitions
to our business activities,
which are expected to be
infrequent.

Returns to shareholders
based on target leverage
range of 0.5x to 1.0x,
after considering future
cash generation and theexternal environment.

Maintain a strong balance sheet with a solid investment grade credit rating• Review the principal risks of the Group and relevant financial parameters, both historical and projected, including liquidity,
net debt and measures covering balance sheet strength.
• These risks and financial parameters are considered by the Board when assessing the viability of the Group, as set out
on pages 83 to 92.

Capital structure metrics

Cash net of overdrafts
Lease liability

FY 2023/24

FY 2022/23

£362m

£961m

(£1,188m)(£1,123m)

Borrowings(£299m)(£298m)Net debt(£1,125m)(£460m)

1.4x

0.5x

Net debt/EBITDA

29Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Progress

ENVIRONMENTAL AND SOCIAL MEASURESKey Performance Indicators (KPIs) help management to measure progress against our strategy.

Non-financial KPIs
We have developed non-financial measures to assess our performance against Burberry Beyond targets, with progress regularly
monitored by our Board.
For further details on environmental and social responsibility activities and FY 2023/24 progress against our Burberry Beyond
targets, see pages 35 to 62. The Group has considered the non-financial reporting requirements under sections 414CA and 414CBof the Companies Act 2006 and has included details in the Annual Report.

Objective

MeasurePerformance• Percentage of key raw materials
in our products certified or
responsibly sourced (as definedin our Sustainable Raw Materials
Portfolio) in FY 2023/24• 55%^ of key raw materials in our products werecertified or responsibly sourced (as defined in our
Sustainable Raw Materials Portfolio) in FY 2023/24• Percentage of certified or
responsibly sourced cotton• 56% of cotton certified or responsibly sourced
in FY 2023/24• Percentage of certified or
responsibly sourced synthetics• 53% of synthetics certified or responsibly sourced
in FY 2023/24• Percentage of certified or
responsibly sourced viscose• 100% of viscose certified or responsibly sourced
in FY 2023/24• Percentage of certified or
responsibly sourced wool

• 27% of wool certified or responsibly sourced
in FY 2023/24• Percentage of leather fromcertified tanneries• 100% of leather from certified tanneries in
FY 2023/24, an increase from 96% in FY 2022/23• Percentage of certified or
responsibly sourced feather
and down• 100% of feather and down certified or responsibly
sourced in FY 2023/24• Progress against aftercare offer• In FY 2023/24, we increased the number of
product categories eligible for our aftercare
services, including refresh treatments forcashmere jumpers and shoe repairs• 383 stores across 33 countries and territories
offer one or more aftercare services, comparedto over 300 stores in 33 countries and territories
in FY 2022/23

Product
Procure certified andresponsibly sourced
key raw materials
100% of key raw materials
in our products to becertified or responsibly
sourced by FY 2029/30 (asdefined in our Sustainable
Raw Materials Portfolio)

Embed circularbusiness models
Continue to evolveaftercare offer andtrial new circularbusiness models^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

30

Burberry Annual Report 2023/24

Objective

MeasurePerformance• Progress against consumer
packaging target• In FY 2023/24, we made good progress against
our target by introducing new plastic-freealternatives for our consumer packaging. Our paredback offering consists of a reusable, 100% recycled
cotton shopper bag for larger purchases. In store,
smaller items are packaged in a Forest StewardshipCouncil (FSC®) certified retail bag, whereas an
FSC® certified paper pouch is used to package
online purchases• 100% of consumer paper-based packaging
procured in FY 2023/24 was FSC® certified1• Progress against operational
packaging target• 53% of operational plastic packaging was madefrom fully recycled content (a decrease of 8%
compared to FY 2022/23 due to a variation
in weight of packaging)

Product
Eliminate plastic
packagingEliminate plastic fromour consumer packaging
by FY 2025/26

Eliminate unnecessary
plastics used inoperational packaging andmaximise recycled content(with at least 50% of
plastic to be made fromfully recycled content)
by FY 2029/30• We continued to work on eliminating unnecessary
plastics in operational packaging. For example,
in FY 2023/24, we replaced plastic void fill witha recycled paper alternative across the majorityof distribution hub sites. We also replaced plastic
packaging tape with recycled paper sealing tapein two of our key distribution centres

PlanetReach net zero
greenhouse gas (GHG)
emissions acrossour value chain by
FY 2039/40• % reduction of scope 1 and scope 2(market-based) emissions, relative
to FY 2016/17 base year

• In FY 2023/24, we maintained our performancefrom the previous financial year, with a 93%
reduction in scope 1 and scope 2 (market-based)emissions from a FY 2016/17 base year
• 100% of the electricity we consumed matched withan equivalent amount of renewable generation
sourced from renewable tariffs, Energy AttributeCertificates, or generated through on-site
renewables• In FY 2023/24, our total energy consumption
decreased by 36% from a FY 2016/17 baseline andby 3% from FY 2022/23• % reduction of scope 3 emissions,relative to FY 2018/19 base year

• 45.9%^ reduction in scope 3 emissions froma FY 2018/19 base year, and a 0.8% reduction
from FY 2022/23• Our FY 2022/23 total scope 3 emissions has been
restated due to a prior year error, as describedon page 44, in line with our restatement policy
detailed in our Responsibility Basis of Reporting
FY 2023/24 on Burberryplc.com. As a result of therestatement, our FY 2022/23 scope 3 emissions
reduction is 45.5% from our FY 2018/19 base year.
A full category breakdown of our scope 3
emissions, including the restated figures for
FY 2022/23, can be found in our Responsibility
Data Appendix 2023/24 on Burberryplc.com

Across our own operations,
we commit to reducing
absolute scope 1 and 2
GHG emissions by 95%
by FY 2026/27 from a
FY 2016/17 base year,
and to maintain this year
on year from FY 2026/27
through to FY 2039/40
Across our extended
supply chain, we aim fora 46% reduction in scope
3 GHG emissions by
FY 2029/30 and a 90%
reduction in scope 3 GHG
emissions by FY 2039/40(from FY 2018/19)^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.
1. In order to calculate the percentage of FSC® certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging
suppliers regarding the value of certified paper packaging sold to Burberry.

31

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Progress

Objective

MeasurePerformance

Embed sustainable
manufacturing
processes across our
supply chain• Percentage of products deliveredby key supply chain partners1
assessed against the ZDHC
Supplier to Zero (S2Z) programme
requirements• 89% of products delivered by key supply chain
partners1 assessed against the ZDHC S2Zprogramme requirements in FY 2023/24

Extend our sustainable
manufacturing initiatives,
covering energy, water andwaste, both within our own
manufacturing and acrossour supply chain• Percentage of products deliveredby key supply chain partners1
assessed against our water
conservation framework• 83% of products delivered by key supply
chain partners1 assessed against our water
conservation framework• Volume of raw material donations• Over 360,000 metres of fabric donated to a varietyof global non-profit organisations in FY 2023/24• Percentage of Canopy ‘Green Shirt’
rated viscose• 100% of our viscose is Canopy ‘Green Shirt’ rated
in FY 2023/24• Percentage of our leather fromcertified tanneries• Percentage of paper-based packaging
procured that is FSC® certified• 100% of our leather was procured from certified
tanneries in FY 2023/24• 96% of all paper-based packaging procured
in FY 2023/24 was FSC® certified2• Percentage of colleagues who havecompleted episodes 1 and 2 of theonline training• 89% of colleagues have completed episode 1 and
90% of colleagues have completed episode 2• Percentage of female candidates
shortlisted• In FY 2023/24, shortlists across all recruitment
campaigns consisted of 57% female, 41% maleand 2% ‘other’ candidates3

Aim to increase hiring
representation to 25%
ethnic minority candidates
in the UK• Percentage of ethnic minority
candidates in the UK• In FY 2023/24, hiring representation in the UK
consisted of 31% ethnic minority candidates3

Aim to increase hiring
representation to 25%
Black/African-American
candidates in the USA• Percentage of Black/AfricanAmerican candidates in the USA• In FY 2023/24, hiring representation in the USA
consisted of 10% Black/African-American
candidates3

Cultivate engagement• Colleague engagement score asmeasured by our Glint survey• Colleague engagement score of 74 points4• Number of women globally in
Director and above roles, divided
by the total number of Director andabove roles• Women account for 57% of the leadership
population

PlanetProtect nature
Contribute to sustainable
management of naturalforests and support zerodeforestation across our
products and supply chain
by FY 2025/26

PeopleSupport inclusion
Achieve a 95% completion
rate globally for episodes
1 and 2 of our online
Diversity, Equity andInclusion learning journey

Increase representation
Ensure shortlists across all
recruitment campaigns are
gender balanced

Create a workplace where
all our colleagues areengaged with our brand,
purpose and values todrive positive businessoutcomes
Ensure our policies,
processes, practices andresources promote equal
gender representation in
our leadership population

1. Key supply chain partners refers to our direct supply chain partners, including finished goods vendors and raw material suppliers.
2. In order to calculate the percentage of FSC® certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging
suppliers regarding the value of certified paper packaging sold to Burberry.
3. These values are based on candidates who chose to voluntarily disclose.
4. Employee engagement score as measured by Glint. Employee Engagement survey undertaken in September 2023. Engagement index based on completed survey responses only.

32

Burberry Annual Report 2023/24

Objective

MeasurePerformance

People in our supply chain
Advance ethicaltrading in our
supply chain
Continue to ensure our
responsible sourcing
standards and audit
requirements are upheldby partners across our
supply chain (this applies
to finished goods
vendors and key raw
material suppliers)

Extend wellbeing
across our
supply chain
Extend our Supply Chain
Engagement Programmes
to further advancewellbeing, livelihoods,
inclusivity and worker
voice across our
supply chain• Number of onsite social
compliance audits carried out inthe year• 495^ onsite social compliance audits carried out
in FY 2023/24• Number of desktop social
compliance assessments carriedout in the year

• 100^ desktop social compliance assessments
carried out in FY 2023/24• Percentage of finished goods supply
chain partners undergoing a social
compliance audit or remaining
in scope from previous audit• 71% of our finished goods supply chain partners
have had a social compliance audit or remainedin scope from previous audit• Number of finished goods vendors
participating in the Vendor
Ownership Programme (VOP)• 24 finished goods vendors participating in the
VOP as of FY 2023/24, an increase from 22 in
FY 2022/23• Number of workers reachedthrough the VOP• Over 20,500 workers reached through the VOP,
a 25% increase from FY 2022/23• Number of finished goods
suppliers participating in our
Wellbeing Programme• Number of finished goods supply
chain workers covered by the
Wellbeing Programme• Nine finished goods suppliers participated in the
Wellbeing Programme• 11,650 workers in the finished goods supply chain
covered by the Wellbeing Programme, an increase
from over 5,000 in FY 2022/23• Number of calls to Burberrysponsored hotlines in the last year
• Number of workers coveredby hotlines• 473 calls made to Burberry-sponsored worker
hotlines, compared to 502 in FY 2022/23• Approximately 33,350 workers covered by
Burberry-sponsored hotlines, a 22% increase fromFY 2022/23• Number of people positively
impacted through community
programmes supported by BurberryGroup plc and The BurberryFoundation in FY 2023/24• Number of people positively
impacted cumulatively throughcommunity programmes supported
by Burberry Group plc and The
Burberry Foundation since FY
2022/23• 219,377 people positively impacted throughcommunity programmes supported by BurberryGroup plc and The Burberry Foundation in FY
2023/24• 380,162 people positively impacted cumulatively
through community programmes supported by
Burberry Group plc and The Burberry Foundation
since FY 2022/23• Percentage of colleagues engaged
in volunteering and fundraising
activities• 8%1 of colleagues engaged in volunteering andfundraising activities in FY 2023/24• Number of volunteering andfundraising projects supported by
Burberry colleagues• 139 volunteering and fundraising projects were
supported by Burberry colleagues in FY 2023/24• Number of charities supported
through volunteering, match
funding and in-kind donations• 92 charities were supported through volunteering,
match funding and in-kind donations

Communities
Inspire young people
to create better
futures
Positively impact 500,000
people between FY
2022/23 and FY 2025/26,
particularly young people
hailing from underserved
communities

Increase volunteering
opportunities
for colleagues
25% of Burberrycolleagues actively
engaged in volunteeringand fundraising activities
by FY 2025/26^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.
1. Figure excludes colleague headcount where there are data restrictions on the Spark volunteering and fundraising platform.

33

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

A MORE SUSTAINABLE FUTURE
FOR LUXURY AND BEYOND

34

Burberry Annual Report 2023/24

OUR BURBERRY BEYOND STRATEGY
As a brand with a deep connection to the outdoors, we strive to act responsibly with respect tothe environment, the communities in which we operate and those employed within our business
and wider supply chain.

Burberry is a global business operating in a variety ofenvironments and contexts. As an open and caring company,
we are committed to behaving responsibly towards our planet,
our people and the communities we impact, and we continue toembed sustainable practices across our Company footprint.
Our Burberry Beyond strategy, with its Product, Planet, People
and Communities pillars, outlines the steps we are taking toachieve our goals. We continue to make strong progress against
our 12 targets (see table below) and have been working to embedand operationalise our strategy by collaborating with teams
across the business and our supply chain.

To ensure we continue to prioritise and act on our mostmaterial Environmental, Social and Governance (ESG) topics,
we will regularly conduct double materiality assessments inline with upcoming regulations, such as the European Union’s
Corporate Sustainability Reporting Directive (CSRD). Insightsfrom this assessment will act as our guiding principles forcomplying with regulation requirements alongside any future
strategy development.
We are in the process of completing our first double materiality
assessment and its preliminary findings have been used to
guide our disclosures for FY 2023/24.

Our Burberry Beyond strategy is supported by four pillars which encompass our key areas of focus.
We have set 12 targets that allow us to track progress as we work towards creating lasting positive change.

Product

PlanetPeopleCommunities

Responsible
craftsmanship

Climate Positive

Champion Diversity,
Equity and Inclusionand people in our
supply chain

Positively impact
young people

1. Procure certified andresponsibly sourced
key raw materials
2. Embed circularbusiness models
3. Eliminate plastic
packaging

4. Reach net zero
greenhouse gas
emissions acrossour value chain by
FY 2039/40
5. Embed sustainable
manufacturing
processes across our
supply chain
6. Protect nature

Read more from page 37

Read more from page 41

7. Support inclusion
8. Increase
representation
9. Advance ethicaltrading in our supply
chain
10. Extend wellbeing
across our supply
chain

Read more from page 48

11. Inspire young people
to create better
futures
12. Increase volunteering
opportunities forcolleagues

Read more from page 58

35

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

EMBEDDING BURBERRY BEYOND
Governance
Embedding Environmental and Social Responsibility into ourgovernance structures supports the delivery of our strategy
and our commitments.
The Board is responsible for ensuring our approach toenvironmental and social matters is integrated into andimplemented across the business. The Board delegates regular
oversight of environmental matters to relevant Committees
responsible for governing the Group’s strategy on environmental
and social matters, including strategy and disclosures (asoutlined below).
Our Sustainability Committee, chaired by our CEO, is
responsible for the Product and Planet pillars of our Burberry
Beyond strategy. Together, these pillars and their targets
make up our Group’s environmental agenda. The Committee
met nine times in FY 2023/24 and reported to the Board twice
on progress towards our environmental targets. Key actions
taken by the Committee in FY 2023/24 include approving
our ReBurberry consumer initiative and reviewing Burberry’s
preparations for complying with forthcoming ESG-related
regulations.
The Ethics Committee oversees the governance of our People
pillar, including the governance of human rights risks and due
diligence in our supply chain. Where risks are identified, they
are reported by management to the Ethics Committee, which
directly reports to the Audit Committee. The Ethics Committee
also has oversight of our Communities pillar as it reviews
the Company’s charitable donations twice a year.
This governance structure ensures the implementation of all
four Burberry Beyond pillars across the business. The Board
receives regular updates and key information relating toenvironmental and social matters.
Our full governance framework is outlined in the Corporate
Governance Statement on page 107.

Managing Environmental and Social
Responsibility
The CEO, who has accountability for Environmental and Social
Responsibility performance at executive level, delegatesmanagerial oversight of environmental and social responsibility
matters to our Corporate Responsibility team. This team, led
by the Vice President of Corporate Responsibility, comprises
over 40 experts globally, with expertise ranging from carbon
accounting through to raw material sourcing and ethical trading.
The Corporate Responsibility team acts as a centre of excellence,
guiding the operationalisation of our strategy by collaboratingwith teams across the business, including Sustainable Finance,
Sustainable IT, Legal, and Human Resources. We also have
Sustainable Manufacturing and Responsible Sourcing teams
embedded within our Supply Chain function ensuring thedelivery of our Burberry Beyond targets across our value chain.

Colleague engagement
We believe that all colleagues have a role to play in delivering
our Burberry Beyond strategy. We seek to inspire, educate andequip our people with the tools to do so through training, events,
strategic communications and engagement opportunities.

36

In FY 2023/24, we grew our Sustainability Professionals
Network to over 350 members, representing multiple areasof the business, including IT, Finance, Marketing and Internal
Manufacturing. The network, which is open to all Burberrycolleagues globally, is an active and engaged community
with members who support each other in decision-making,information sharing and championing best practice. Members
have access to insights, events and webinars on topics
including Burberry Beyond updates, industry trends, bestpractice and upcoming regulations.
This year, the Corporate Responsibility team conducted training
on a number of sustainability topics for teams across the business(see Product section, pages 37 to 40, for further details). We willcontinue to expand our sustainability training, with a particularfocus on developing the relevant skills, knowledge andcompetencies required for colleagues to contribute to thedelivery of our strategy.

RewardThe remuneration of the Executive Directors is partly linked
to our progress in building a more sustainable future, including
progress towards the Group’s longer-term climate goals, via theannual bonus plan and a sustainability underpin in the Burberry
Share Plan (BSP).
In FY 2023/24, 25% of the annual bonus for Executive Directors
was once again linked to performance against strategic objectives
linked to our strategy and brand as well as our environmental
and social targets. There will once again be a sustainability
underpin in the 2024 BSP award for the Executive Directors.
More details of this are set out in the Directors’ Remuneration
Report on pages 125 to 142.
In FY 2023/24 we began linking a proportion of our annual
corporate bonus plan for the wider workforce to the achievementof sustainability metrics in our Product and Planet pillars.
This has been well received by colleagues and demonstrates
the value we place on sustainability as part of our strategy.

Traceability
Traceability enables us to assess and manage theenvironmental and social risks associated with raw material
sourcing, while acting as an enabler for meeting wider strategic
goals, such as product and supply chain decarbonisation in
support of our net zero transition. Additionally, traceability iscentral to the Company’s compliance with existing andincoming ESG regulations.
In FY 2022/23, we set ourselves a target to have full traceabilityof key raw materials by FY 2029/30 delivered through our
traceability programme. Using a third-party traceability tool,
we have successfully implemented a traceability pilot for cotton,wool and synthetics with our key suppliers, allowing us to trackthese fibres back to the country of origin. We continue to scale
this programme at pace, with the ambition of reaching 80%
traceability of cotton, synthetics and wool by FY 2025/26,
and will include additional materials in line with our FY 2029/30
raw material targets.

Burberry Annual Report 2023/24

PRODUCT
Introduction

ApproachThrough textile innovation, Thomas Burberry elevated outerwear
performance and enhanced its ability to protect explorers fromthe elements. Today, we are challenging ourselves to again
harness creativity to play our part in protecting our planet.
In line with our Company’s strategy, we are incorporating
certified and responsibly sourced key raw materials into our
products, embedding circular business models into our ways
of working and eliminating plastic from our packaging, whileat the same time reducing our use of resources.

As part of our Product strategy, environmental considerations
are factored into the decisions we take with respect to thedesign and manufacture of our products.

Policies
Our Product pillar is underpinned by our Responsible Raw
Materials Sourcing Policy, which outlines our requirements forvalue chain partners and colleagues, as well as our commitments
to responsible raw materials sourcing. The policy (available
on Burberryplc.com) also outlines our requirements with respect
to packaging, and animal welfare and testing.
Our Beauty licensee, Coty, publishes its own Against Animal
Testing Policy & Programme, which is available on Coty.com.

In FY 2023/24, we introduced the Sustainable Raw Materials
Portfolio, which details the certification and responsible
sourcing criteria accepted for each raw material we procure.
The document is regularly reviewed to ensure the best available
sourcing criteria are included and considered. We also set
targets for each business unit to track progress against useof the guidelines, including setting performance objectives forrelevant teams and individuals. The Sustainable Raw Materials
Portfolio is already embedded within merchandising plans anddesign briefs, resulting in all ready-to-wear clothing in our
Burberry Classics collection being made with a main material
containing at least 70% organic or 50% recycled content.
We also use consumer insights and our annual Brand Health
Tracker to inform this agenda and deepen customer engagement.

37

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

Procure certified and responsibly
sourced key raw materials
Target: 100% of key raw materials in our products are to becertified or responsibly sourced by FY 2029/30 (as definedin our Sustainable Raw Materials Portfolio)
In FY 2022/23, we set a target for all key raw materials in our
products to be certified and traceable by FY 2029/30. We havesince updated our target strategy to take a portfolio approach
to raw materials used in our products, recognising the needfor multiple raw material sourcing standards. Our Sustainable
Raw Materials Portfolio sets out the accepted certification andresponsible sourcing criteria across our raw materials, whichallow us to track our progress in this area. Our traceability
target to FY 2029/30 remains in place as a key enabler of our
Burberry Beyond strategy.

Progress
In FY 2023/24, 55%^ of key raw materials in our products werecertified or responsibly sourced (as defined in our Sustainable
Raw Materials Portfolio).
This financial year, six key raw materials (as listed below)
were included in the scope of our target. These represent over
90% of the total volume (in weight) of main materials within
our products.

% of certified or responsibly sourced key raw materials

FY 2023/24

Cotton56%

Synthetics (nylon, polyester and TPU)

53%

Viscose

100%

Wool

27%

Leather

100%

Feather and down

100%

Please refer to our Responsibility Data Appendix 2023/24 on
Burberryplc.com for detailed data and calculation methodology.

recycled synthetics were strong driving forces of this year’s
performance. This is partly due to the launch of our BurberryClassics collection, a core commercial range, where all
ready-to-wear clothing had a main material containing
responsibly sourced materials (at least 70% organic or 50%
recycled content). In addition, 100% of leather in FY 2023/24
was sourced from certified tanneries driven by strong
engagement with our sourcing teams and suppliers.
Furthermore, to support the delivery of our raw materials
targets, we delivered training to over 300 colleagues involvedin key stages of the product development and raw material
sourcing processes. We also have a team leading thedevelopment and integration of innovative materials. We areworking with an Italian supplier and third-party technology
supplier to develop and trial the use of hydroponic cotton.
This cotton is grown through soil-less farming in a verticalgreenhouse, resulting in the same high-quality cotton but withlower water usage.

Embed circular business models
Target: Continue to evolve our aftercare offer and trial new
circular business models
We are working to create a more sustainable fashion industry
and meet changing consumer expectations. Burberry products
are expertly crafted using materials of the highest quality,
so they are designed to last. Through innovations in circularbusiness models, we aim to keep products and materials
in use for longer.

Progress
Aftercare
Our increasingly popular aftercare services ensure ourcustomers can enjoy their purchases for longer. In FY 2023/24,
we expanded our refresh and repair services to include
reproofing for select rainwear garments using organic
biodegradable solutions, refresh treatments for cashmere
jumpers, and shoe repairs.

Repair and refresh
During FY 2023/24, we updated our calculation methodology
to align with external reporting requirements and best practice(see our Responsibility Basis of Reporting FY 2023/24 on
Burberryplc.com for details). We have made progress for all
key raw materials, or maintained 100% certification, excluding
wool where we updated our methodology for calculating our
performance against target. Our Corporate Responsibility teamdrove progress against our target by partnering with internalteams and working with supply chain partners to champion
the use of responsibly sourced materials. Organic cotton andBy the end of FY 2023/24, over 380 stores across 33 countries
and territories offered one or more of our aftercare services.
Approximately 43,000 products were repaired or refreshed using
these services during the year. Please see our Responsibility
Data Appendix 2023/24 on Burberryplc.com for a breakdownof these services.
To support client engagement, we rolled out a dedicatedservices training series to just over 2,200 Retail Client Advisors,
so they can inform customers about our work in-store and via
our various customer service channels.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

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Burberry Annual Report 2023/24

RentalRemakeThis year, we continued exploring alternative ways for customers
to experience our products, including through rental partnerships
and adapted product offerings.

We launched our first product upcycle programme during
FY 2023/24. Using the cashmere upcycle service, customers in
the UK can have visible signs of wear and tear on their Burberry
cashmere scarf repaired with custom embroidery, appliquésand personalised touches. This service helps extend the lifeof the product while at the same time giving it a bespoke finish.

We continued our partnership with My Wardrobe HQ in theUK, through which members can rent Burberry outerwear,
ready‑to‑wear, bags and accessories. Our most rented items
include dresses and bags, which are typically hired for a
four-day period. Our trial with Cocoon handbag subscription
service, which began in February 2023, is ongoing.

ResaleIn FY 2023/24, we announced a partnership with global
luxury resale platform Vestiaire Collective in the UK and USA.
Customers can trade in Burberry women’s outerwear andhandbags on the Burberry x Vestiaire Collective platform in
exchange for a Burberry gift card, which can be used in-store
or online. All pre-loved Burberry pieces are available topurchase globally through Vestiaire Collective.

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Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

Eliminate plastic packaging
Target: Eliminate plastic from our consumer packaging
by FY 2025/26
Target: Eliminate unnecessary plastics used in operational
packaging and maximise recycled content (with at least 50%of plastic to be made from fully recycled content) by FY 2029/30
Managing our use of plastic is key to reducing the environmental
impacts associated with our products and operations.

Progress
In FY 2023/24, we made good progress against our target toeliminate plastic from our consumer packaging by introducing
new plastic-free alternatives.
To minimise and reduce waste, we now take a minimalist
approach to our consumer packaging. Our pared-back offering
comprises a reusable 100% recycled cotton shopper bag forlarger purchases and paper pouches or retail bags for smaller
items. All of our consumer paper-based packaging is widely
recyclable and (FSC®)1 certified, reflecting our commitment tosupport zero deforestation and sustainable forest management.
We also removed all hardware such as zips and snaps from our
new plastic-free garment covers to facilitate recyclability, andlimited the types of purchases packaged with them to rainwear
and tailoring. Garment covers and dust bags are made with60% recycled cotton.

We continued to work on eliminating unnecessary plastics
in operational packaging by replacing plastic void fill witha recycled paper alternative across the majority of distribution
hub sites. We also replaced plastic packaging tape with recycled
paper sealing tape in two of our key distribution centres.
Testing is ongoing in all other sites. Finally, we removed plastic
polybags used for shoes and now exclusively use dustbags
comprised of 60% recycled cotton. In FY 2023/24, 53% of
operational plastic packaging was made from fully recycledcontent (compared to 61% in FY 2022/23).
We also collaborated with industry experts and The Fashion Pact
to progress our FY 2029/30 target to eliminate unnecessary
plastic in our operational packaging.

“Our 2025 plastic elimination target forcustomer packaging goes hand in hand withelevating the luxury customer experience.
For example, we have replaced our plastic
hangers with reusable, lightweight FSC®
certified wooden hangers.”
Niclas Ekerot
Vice President, Retail Excellence

1. In order to calculate the percentage of FSC® certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging
suppliers regarding the value of certified paper packaging sold to Burberry.

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Burberry Annual Report 2023/24

PLANET
Introduction

Approach

Burberry’s heritage is embedded in the natural world.
The Planet pillar of our Burberry Beyond strategy outlines
how we manage our most significant environmental impacts
and dependencies to mitigate material risks and realise
opportunities while contributing to global efforts to tackle
climate change and nature loss.

Climate Positive is our approach to delivering our Planet
pillar commitments. We are working to reach net zero GHG
emissions by FY 2039/40, extend our sustainable manufacturing
programmes, and contribute to the sustainable managementof natural forests.

Policies
Our Global Environmental Policy (available on Burberryplc.com)
sets out our commitment to environmental responsibility
and the standards we uphold across our value chain. These
principles are mandatory and apply to all of our operations
and supply chain partners’ activities. Supplier environmental
performance is monitored systematically (see ‘Embed
sustainable manufacturing’ section on pages 45 to 46).

Our pillar objectives are delivered by the Corporate
Responsibility and Sustainable Manufacturing teams working
in close collaboration with other internal teams and supply chain
partners to drive performance against our targets. Throughcooperation between key operational teams, including Supply
Chain, Merchandising, Sourcing and Strategy, we ensure
environmental management remains integral to day-to-day
business processes and decisions.

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Reach Net Zero by 2040

Scope 1 and 2 GHG emissions

Target: Reach net zero greenhouse gas emissions across ourvalue chain by FY 2039/40

FY 2023/24

Reducing GHG emissions and managing climate-related risks
are material to the long-term success of our business. We arededicated to reducing our scope 1, 2 and 3 emissions and areembedding this commitment into our organisational strategy
with the ultimate aim of becoming Net Zero by 2040. Ouremissions reduction targets are aligned to a 1.5°C pathway
and have been validated by the Science-Based Targets initiative(SBTi) against their Corporate Net-Zero Standard. We areassessing whether we will be required to set separate SBTi
FLAG (Forest, Land and Agriculture) targets within our overall
Net Zero by 2040 commitment.

FY 2022/23

Our approach to decarbonisation is to maximise absolute
reductions through effective energy efficiency and carbon
reduction projects, before compensating for any residual
emissions through high-integrity and certified carbon credits
in line with the SBTi’s Corporate Net-Zero Standard. See the
Global GHG emissions table on page 43 for the numberof carbon credits we purchased in FY 2023/24. Our Burberry
Beyond Climate Positive 2040 report details our strategic
direction and plan to reduce GHG emissions across ouroperations and supply chain.

Progress
We are committed to business-wide decarbonisation, andduring FY 2023/24, focused on building the internal capacityand momentum required to develop and operationalise ourlong-term transition plan.
Delivering our Net Zero by 2040 target will require short-,
medium- and long-term solutions driven by a broad range ofteams across the business. In FY 2023/24, we began conducting
cross-functional strategy “sprints” to identify feasible andeffective solutions to our biggest blockers to achieving net zero
emissions by 2040. Using insights gathered from our scope 3
emissions data (see our Responsibility Data Appendix 2023/24
on Burberryplc.com for the emissions category breakdown),
we identified impact areas and actions to address. These areas
cover each stage of our product lifecycle, from selection of raw
materials to circular initiatives.

Scope 1 and 2
Target: Across our own operations, we commit to reducing
absolute scope 1 and 2 GHG emissions by 95% by FY 2026/27
from a FY 2016/17 base year, and to maintain this year on year
from FY 2026/27 through to FY 2039/40
In FY 2018/19, we set an SBTi-approved target to reduce ourabsolute scope 1 and 2 emissions by 95% by FY 2022/23
compared to a FY 2016/17 baseline. We set this commitment
knowing that the target was ambitious but with the intention
that it would help us drive change at pace. With new plans now
in place, we have extended the deadline to FY 2026/27 and will
maintain the 95% reduction year-on-year to FY 2039/40.

42

1,667^

1,667
FY 2021/22
1,835
FY 2016/17 – Baseline
24,570Total scope 1 and 2 market-based emissions (tonnes CO2e).
^ This metric was subject to external independent limited assurance byPricewaterhouseCoopers LLP (PwC). For the results of that assurance, see
PwC’s Independent Limited Assurance Report and Burberry’s Responsibility
Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Progress
We reduced absolute scope 1 and 2 emissions from our own
operations by 93% from our FY 2016/17 baseline, maintaining
our FY 2022/23 reduction performance.
Key to our emissions reductions from FY 2016/17 has been
the continued use of renewable electricity throughout ouroperations. In FY 2023/24, we maintained the progress madein the previous financial year, with 100% of the electricity weconsumed matched with an equivalent amount of renewablegeneration sourced from renewable tariffs, Energy AttributeCertificates, or generated through on-site renewables. We now
have solar panels installed at our headquarters in London andour distribution sites in Italy and the USA. We have also begun
improvement works at our distribution site in Blyth, UK, where
we are installing solar panels, furthering on-site generationin our own operations.
In conjunction with our use of renewable electricity, we arefocused on delivering emissions reductions through energy
efficiency. In FY 2023/24, our total energy consumption
decreased by 36% from a FY 2016/17 baseline and by 3% fromFY 2022/23. Over the past financial year, we carried out a seriesof energy audits across our retail stores, offices, manufacturing
sites and distribution hubs in line with the Energy Efficiency
Directive (EED) and Energy Savings Opportunity Scheme(ESOS) energy regulations in the UK and Europe. Through theseaudits we identified more immediate opportunities to increaseenergy efficiency, including maximising lighting efficiencies
through LED upgrades and improving the management of heating
and cooling systems using temperature boundaries. We also
identified more ambitious improvements, such as upgrading
heating systems and replacing single-glazed windows in stores
to reduce heat loss.
Delivery of our scope 1 and 2 emissions reduction target
continues to be supported by ensuring our buildings meet highenergy efficiency standards. In FY 2023/24, we obtained the
LEED Gold certification in 32 additional stores and the BREEAM
Excellent certification at one more store, our Bond Street
flagship, making a total of 105 certified stores since FY 2018/19.

Burberry Annual Report 2023/24

Global GHG emissions

Total energy including: purchase of electricity,
the operation of any facility, combustion of fuelfor facilities and vehicles/kWhCurrent reporting year 2023/24

Reporting year 2022/23

GlobalUK andoffshore only

GlobalUK andoffshore only

GlobalUK andoffshore only

Reporting year 2021/22

54,735,836^

15,402,415

56,262,614

15,518,973

72,548,109

18,517,153

Scope 1 – Combustion of fuel and operationof facilities (Tonnes CO2e)

1,545^

1,056

1,585

1,082

1,768

1,311

Scope 1 – Combustion of fuel from ownedor leased transport (Tonnes CO2e)

122

3

82

2

67

1

Scope 2 – Electricity purchased and used for
operations (location based) (Tonnes CO2e)

17,308^

1,998

17,692

1,872

25,866

2,390

Scope 1 and 2 – Total emissions (location based)(Tonnes CO2e)

18,975^

3,057

19,3592,956

27,701

3,702

Scope 2 – Electricity purchased and used for
operations (market based) (Tonnes CO2e)

0^

0

0

0

0

0

Scope 1 and 2 – Total emissions (market based)(Tonnes CO2e)

1,667^

1,059

1,667

1,084

1,835

1,312

Total emissions offset by Verified Emissions
Reduction Certificates (Tonnes CO2e)

1,667

1,059

1,667

1,084

1,835

1,312

Scope 1 and 2 intensity (location-based)(Tonnes CO2e per £1,000,000 sales revenue)

6.4

N/A

6.3

N/A

9.8

N/A

% of energy and electricity consumption (kWh)sourced from renewable sources (%)

84%^

63%

84%

62%

86%

61%

Burberry applies an operational control approach to defining its organisational boundaries. Data is reported for sites where
it is considered that Burberry has the ability to influence energy management. Data is not reported for sites where Burberry has
a physical presence but does not influence the energy management for those sites, such as a concession within a department store.
Overall, the emissions inventory reported equates to 97% of our net selling space square footage. Burberry uses the Greenhouse
Gas Protocol (using a location- and market-based approach to reporting scope 2 emissions) to estimate emissions and applies
conversion factors from UK BEIS, IEA and RE-DISS. All material sources of emissions are reported. Refrigerant gases were deemed
not material and are not reported. Market-based emissions globally and for the UK relating to purchased electricity within ouroperations (scope 2) are stated as zero due to us procuring an amount of renewable electricity equivalent to 100% of our annual
consumption. GHG emissions data reported is based on the period from 1 April 2023 to 31 March 2024. The Company’s financial
accounting period is from 2 April 2023 to 30 March 2024. However, references to FY 2023/24 for the selected Responsibility
indicators included in the Environmental and Social Responsibility section of Burberry’s Annual Report 2023/24 refer to the period
1 April 2023 to 31 March 2024.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

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Strategic Report | Environmental and Social Responsibility

Scope 3
Target: Across our extended supply chain, we aim for a 46%
reduction in scope 3 GHG emissions by FY 2029/30 and
a 90% reduction in scope 3 GHG emissions by FY 2039/40(from FY 2018/19)

Progress
During FY 2022/23, we reassessed our methodology forcalculating scope 3 GHG emissions, specifically in regards toestimations within Category 1 (Purchased Goods and Services).
As a result, we have revised our spend-based calculations for
sub-categories within Category 1, accounting for 0.3% of total
scope 3 emissions in FY 2023/24. This is considered a change
in methodology for the baseline year, and the correction ofan error in FY 2021/22 and FY 2022/23 data. In line with ourrestatement policy, as described in our Responsibility Basisof Reporting FY 2023/24 on Burberryplc.com, we have restated
our FY 2022/23 scope 3 emissions in order to correct this error.
To ensure clarity and consistency in the comparison between
our year-on-year performance, we have applied this new
methodology to our FY 2023/24 calculations as detailed in our
Responsibility Basis of Reporting FY 2023/24 (available on
Burberryplc.com). Our FY 2018/19 baseline and FY 2021/22
remain unchanged due to being below our restatement
threshold. As a result of the restatement, our FY 2022/23 scope
3 emissions reduction is 45.5% from our FY 2018/19 base year.
Our methodology for accounting and reporting GHG emissions
is aligned with the Greenhouse Gas Protocol Corporate Value
Chain (Scope 3) Accounting and Reporting Standard. A full
category breakdown of our scope 3 emissions, including
the restated figures for FY 2022/23, can be found in our
Responsibility Data Appendix 2023/24 on Burberryplc.com.
Overall, in FY 2023/24, our scope 3 GHG emissions decreased
by 0.8% from FY 2022/23 and by 45.9%^ from our FY 2018/19
base year, against which we are measured for our 2030 and
2040 science-based targets.
Our scope 3 emissions performance in largely determined byboth the volume of products we produce and our product mix.
However, we continue to make targeted interventions to ensure
we are working to reduce our carbon emissions over the coming
years in line with our 2030 and net zero targets.
With the vast majority of our scope 3 GHG emissions arisingfrom our extended supply chain, we are focusing on five key
impact areas to drive action and progress: 1) Raw Materials,
2) Circularity and Reducing Product-related Waste, 3) Supply
Chain Decarbonisation, 4) Sustainable Transportation and 5)
Operational Decarbonisation. These impact areas are also thefocus of our cross-functional transition planning initiated thisfinancial year. Further details about initiatives under each ofthese areas are provided in the Decarbonising our Value Chain
section of the Burberry Beyond Climate Positive 2040 reporton Burberryplc.com.

As cashmere contributes significantly towards our raw material
emissions, we are part of a cross-industry Life Cycle Assessment
coordinated by Textile Exchange with the aim of improving
our understanding of its environmental impact. This builds onactions we are already taking to reduce emissions associatedwith cashmere sourcing and production, including phasing out
the use of virgin cashmere in specific product categories.
We are also taking steps to reduce the amount of excessmaterials generated and increase material donations to external
partners to both extend the life of materials already procured
and avoid further emissions associated with excess materials(see page 46 for detail on textile and leather donations).
In other key impact areas, we are working to drive reductions
in transportation and logistics emissions. This includes reducing
the proportion of finished goods transported by air between
our vendors to our hubs year on year, focusing instead on lesscarbon-intensive modes of transport such as sea- and road‑freight.
We are working with supply chain partners to promote energy
efficiency and transition to renewable electricity as part ofour actions to reduce emissions. Specifically, we track energy
performance across our finished goods production sites.
In FY 2023/24, 70% of our finished goods vendors globallyused electricity from renewable sources.

Scope 3 GHG emissions
FY 2023/24
409,994^
FY 2022/23
413,340*
FY 2021/22
513,243
FY 2018/19 – Baseline
758,542
Total scope 3 emissions (tonnes CO2e).
^ This metric was subject to external independent limited assurance byPricewaterhouseCoopers LLP (PwC). For the results of that assurance, see
PwC’s Independent Limited Assurance Report and Burberry’s Responsibility
Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.
* FY 2022/23 total scope 3 emissions has been restated due to a prior year error
as described on page 44. Please see our Responsibility Data Appendix 2023/24(on Burberryplc.com) for a full category breakdown of our scope 3 emissions including
the FY 2022/23 restated figures. Additional details of our methodology are available
in our Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com.

We have made additional progress in driving decarbonisation
across our purchased goods and services by increasing theuptake of certified and responsibly sourced raw materials andfurther investment into innovative materials.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

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Embed sustainable manufacturing
Target: Continue to extend our sustainable manufacturinginitiatives, covering sustainable chemical management, water
and waste, both within our own manufacturing and acrossour supply chain
Our work with our value chain goes beyond reducing GHG
emissions to encompassing the sustainable managementof resources and production processes. Our commitment toimplementing our sustainable manufacturing programme within
our supply chain ensures we are lowering both our dependencies
and our impact across key environmental topics. Our dedicatedSustainable Manufacturing team is responsible for implementing
and monitoring this programme.

Progress
Chemicals
Our approach to sustainable chemical management is to drive
systemic change and achieve zero discharge of hazardous
chemicals across the industry. Our Chemical Management
Programme ensures safer products, reduced exposure forcommunities in and adjacent to our supply chain, and cleaner
water and air emissions into the environment.
Our Burberry Manufacturing Restricted Substances List (MRSL)
prohibits all Perfluoroalkyl and Polyfluoroalkyl Substances(PFAS) in addition to the Zero Discharge of Hazardous
Chemicals (ZDHC) MRSL. Our Burberry Product Restricted
Substances List (PRSL) ensures the safety of our products
through monitoring and robust testing standards.
We are implementing the ZDHC Supplier to Zero (S2Z)
programme across our value chain to ensure that the bestpractices in sustainable chemical management are adopted.
In FY 2023/24, 89% of products were delivered by key supply
chain partners1 assessed against the ZDHC S2Z programme
requirements. We work to continuously improve the quality of
our supply chain effluents and therefore require wet processors
to perform wastewater testing in line with the ZDHC Wastewater
Guidelines. The results are published annually on Burberryplc.com.
Over the last 10 years, along with our luxury peers, third-party
suppliers and external chemical experts, we have helped toshape the direction of the industry on the chemical management
roadmap. Since 2014, Burberry has been an active memberof the ZDHC and, in 2023, our chemical management
implementation was recognised as Aspirational for the third
consecutive year, the highest attainable level in ZDHC’s Brands
to Zero Leader Programme.
For more details and data on our Chemical Management
Programme, please refer to our Responsibility Data Appendix
2023/24 on Burberryplc.com.

As part of this programme, we have developed a water resilienceassessment to help us identify potential hotspots, defined assites where water management levels are disproportionate totheir levels of water intensity and risk. The assessment acts asa roadmap to improve water management at our partners’ sites,by promoting a better understanding of their water demand,
driving water efficiency and water recycling, and encouraging
greater disclosure.
In FY 2023/24, 83% of products were delivered by key supply
chain partners1 assessed against our water conservation
framework. We have improved our resilience profile annually
through partner engagement, capacity building and direct
support. The percentage of products delivered by partners withlow levels of water resilience (Red/Hotspot) decreased from
11% in FY 2022/23 to 4.25%, while the percentage of products
delivered by partners with good levels of water resilience(Green/Excellent) increased from 36.7% to 47.9%. For a full
breakdown of our assessment and results, please refer to our
Responsibility Data Appendix 2023/24 on Burberryplc.com.
Following our assessment, we work with potential hotspot sites
to co-develop strategies to improve their water resilience.
We aim to have zero hotspots by 2030.
Additionally, we are working to understand our products’
water footprint to inform innovation efforts in water efficienttechnologies and materials. Beyond our manufacturing value
chain, water is a key resource for raw material production.
We are taking steps to mitigate our impacts and risks at thisstage of the value chain. For example, Burberry’s raw material
certification targets aim to embed best practice environmental
management, including minimising water impacts (see page 38
for more detail on these targets).
We report on our approach to managing water-related climate
risks, such as water stress and flooding, in our Task Force on
Climate-related Financial Disclosures (TCFD) on pages 66 to 79.
We are improving the reach of our assessment framework, andin turn our supply chain profile, and we recognise the need for
greater collaboration to drive systemic change. See page 62 fordetails of the partnerships we have established to deliver on this.

Key supply chain partners assessed in FY 2023/24
83%

Supply chain partners with low levels of water resilience
11%
4.75%

Supply chain partners with good levels of water resilience
36.7%

Water
We are committed to preserving water for future generations.
Our Water Conservation Programme focuses on increasing
resource efficiency, reducing our water impacts and increasingwater resilience. To achieve this, we work closely with our key
supply chain partners1, cultivating a culture of openness andtransparency to address our water impacts at the manufacturing
stages of our value chain.

48%

FY 2023/24

FY 2022/23

Note: Figures are based on % product units delivered by key supply chain partners
in the relevant financial year.

1. Key supply chain partners refers to our direct supply chain partners including finished goods vendors and raw material suppliers.

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Strategic Report | Environmental and Social Responsibility

Waste
We are committed to embedding circular principles andreducing waste across our operations and direct supply chain.
Our waste hierarchy outlines our preferred approach to reducing
waste across our footprint, including at the design stage,in the supply chain and in merchandising. From most preferred
to least preferred, we endeavour to Rethink, Reduce, Reuse,
Recycle and Recover. Our preferred approach is to avoid waste
before it is created by designing and planning with circularity
and the inefficiencies that lead to waste creation in mind.
Where waste still occurs, we continue to expand existing routes
while developing new partnerships and solutions. We manage
our stock position closely by proactively allocating current stock
across channels and regions to meet demand.
To help our customers keep their Burberry products in use forlonger, we have been expanding our aftercare services andembedding circular business models. More details regarding
our circularity programmes can be found on pages 38 to 39.

Operational waste
To minimise and reduce waste across our own operations in
FY 2023/24, we diverted 100% of operational waste from landfill
with an average recycling rate of 74% in our own operations(compared to 71% in FY 2022/23).

Non-stock waste
We have introduced Sustainability Principles to reduce theoverall impact of marketing activity, events, visual merchandisingand gifting. These Principles are mandatory for all external
partners and internal Marketing and Production teams. A key
component of the Sustainability Principles consists of detailed
guidance for extending the life of materials where possible,
as aligned to our waste hierarchy. For example, in collaboration
with UpCycle Labs, a UK-based recycling partner, we repurposed
our Bond Street flags from our London takeover in September
2023 into unique Thomas Burberry busts awarded to colleagues
recognised by our annual internal Icon Awards.
We prioritise re-use where possible, giving products and props
a second life. In FY 2023/24, we donated 20 metric tonnesof old props, retail furniture and visual merchandising to ourcharity partner Vitruvium. This includes 43 rolls (approximately
13 metric tonnes) of carpet previously used in our FY 2023/24
shows and events. Following our most recent Burberry Winter2024 show, we donated 193 custom fleece cushions to theRoyal Society for the Prevention of Cruelty to Animals (RSPCA)
London East, RSPCA Thanet and RSPCA Leybourne.

Donations
Textile and leather waste
We recognise the fashion industry’s shared challenge withrespect to the environmental impacts of excess fabric andtextile waste. Supply chain efficiency and management ofmaterials is a key area of focus. By putting in place systems tooptimise the procurement and utilisation of our materials andfinished goods, we can reduce their associated climate impacts.

Working closely with our supply chain partners, we collaborate
to increase recycling and repurposing of textile and leather
offcuts through shared partners.
We continue to donate excess materials, including textile,leather, yarns, trims and mannequins, to charities and design
schools globally. In FY 2023/34 we donated over 360,000 metresof fabric to a variety of global non-profit organisations, including
the British Fashion Council, Leeds Beckett University, andProgetto Quid.
Finished goods
We provide finished goods donations to schools, charities
and social enterprises. This includes our long-time partner andUK based charity, Smart Works, which provides clothing andcoaching to help women secure employment. In FY 2023/24,
we donated 2,650 items of business clothing to Smart Works
for clients to wear during job interviews. In the USA, we donatedover 2,000 units of clothing to Good360, an organisationthat distributes urgently needed goods to charities that needthem the most.

Protect nature
Target: Contribute to sustainable management of naturalforests and support zero deforestation across our products
and supply chain by FY 2025/26
This year, we initiated the development of a nature strategy tomanage our most material nature-related impacts, dependencies,
risks and opportunities in our value chain and beyond. This willbuild on our existing commitment to contribute to sustainable
management of natural forests and support zero deforestation,and our alignment with the recommendations of the Taskforce
on Nature-related Financial Disclosures (TNFD).

Progress
Deforestation and sustainable forest management
In FY 2023/24, for the second straight year, 100% of our
procured viscose was ‘Green Shirt’ rated in Canopy’s Hot Button
Ranking. This ensures suppliers have been audited and assessed
as low risk of sourcing from Ancient and Endangered Forests,
and are ZDHC-compliant.
Regarding packaging, our retail bags and gift boxes are FSC®
certified, guaranteeing that the paper used is made of responsibly
sourced wood fibre and does not come from endangered
forests. Additionally, we are enhancing our sustainable practices
by ramping up the sourcing of eco-friendly cardboard for bothconsumer and operational packaging. In FY 2023/24, 96%
of our paper-based packaging was FSC® certified1.
We are also committed to avoiding deforestation and forest
degradation driven by the sourcing of leather (please see our
Responsible Raw Materials Sourcing Policy on Burberryplc.com
for more details). In FY 2023/24, we sourced 100% of ourleather from certified tanneries (compared to 96% in FY 2022/23).
This increase in sourcing certified leather was driven by strong
engagement with our sourcing teams and suppliers.

1. In order to calculate the percentage of FSC® certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging
suppliers regarding the value of certified paper packaging sold to Burberry.

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Burberry Annual Report 2023/24

Partnerships with raw material producers
The Burberry Regeneration Fund supports regenerative farming
projects in our supply chain to promote biodiversity, improvesoil carbon and support livelihoods in local communities.
In partnership with PUR, a certified B Corp and providerof nature-based solutions, we work with wool producers
in Australia to promote regenerative farming practices across
12 farms. With support from PUR, the farmers are implementing
practices such as seeding new pasture grasses, setting aside
wildlife corridors, and installing new fencing and paddocks toallow more rotational grazing.
In addition, we have partnered with a major cotton supplier totrial sourcing cotton produced in Southern USA using organicand regenerative practices. This cotton is certified by both the
Global Organic Textile Standard (GOTS) and Regenagri andsupports our mitigation of water- and biodiversity-related risks
by reducing water consumption, preserving soil health andavoiding the use of harmful chemicals.

Protecting nature beyond our own value chain
In FY 2023/24, we took further action to support nature
protection and restoration beyond our own value chain.
For example, 2024 marks the second year of our three-year
ecological restoration and conservation programme inpartnership with the Hainan Provincial Bureau of International
Economic Development, the Educational Department of Hainan
Province, the Forestry Department of Hainan Province andHainan Reform and Development Research Foundation.
In line with Mainland China’s national sustainability goals andBurberry’s net zero agenda, this programme aims to restore
the ecosystems in key areas across Hainan and preserve
the island’s tropical forestry, mangrove ecosystems andbiodiverse habitats.

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PEOPLE
Introduction
People are at the heart of our business and operations andour direct colleagues and those in our supply chain are criticalto our success. We work to create an inclusive culture andenvironment where creative minds from different backgrounds
can collaborate and flourish.
We respect and uphold human rights wherever we operate andwe work to enhance the wellbeing of all workers in our supply
chain through dedicated initiatives. Read more from page 54.

Policies
Our people-focused policies and procedures are aligned to ourcommitment to being an open, inclusive and caring employer,
and assist us in supporting our colleagues throughout theircareer at Burberry.
Our Code of Conduct includes our key policies and processes
and sets the behaviours expected of our people and Burberrybusiness associates. It reiterates the principles of respect,fairness and compliance inherent in our Company values,
and our intention as a business to comply with local laws
and regulations.
By championing inclusivity and diversity, we foster a workplaceculture where our people can thrive. Our Global Diversity, Equity
and Inclusion Policy includes clear guidelines and accountability
measures to ensure we attract and retain a diverse workforce.
For example, Burberry’s Global Parental Leave Policy offers all
eligible employees 18 weeks of parental leave at full pay andthe opportunity to work a 30-hour week at full pay for a further
four weeks on their return.
We review our Global Diversity, Equity and Inclusion Policy
annually and continue to work with external organisations toensure inclusive practices and procedures are upheld acrossBurberry, where we exercise fairness and ensure that people
with disabilities are equally considered. We make reasonableadjustments for people with disabilities (including any
colleagues who have become disabled) throughout their48

career at Burberry and ensure our online materials, career site,
policies and processes are inclusive of people with both visible
and non-visible disabilities. For example, to support fair andobjective performance management, we provide training
and guidance for line managers that emphasises evaluatingcolleagues based on skills, capability and demonstrated
performance. We also offer leaders and line managers(including those involved in the recruitment process) training
covering unconscious bias awareness and mitigation strategies
to ensure all are candidates and colleagues assessed basedon their experience, merit and contributions.
Our operations are also governed by our Global Health and
Safety Policy, ensuring appropriate measures are in place toprovide safe and healthy environments for our people and thosevisiting Burberry’s premises. We follow all applicable guidelines
and procedures relevant to our industry and local laws.
We are committed to engaging with our people, customers
and suppliers not only in accordance with legislation but also
ethically and with independence and integrity. Our Anti-Bribery
and Corruption Policy outlines the steps taken to prevent
bribery and corruption in connection with Burberry. Everyone
associated with Burberry is expected to conduct themselvesin accordance with the highest ethical standards at all times.

Approach
Our approach to supporting our people and meeting
our targets requires collaboration between teams acrossthe business. We leverage the strengths and capabilities
of different departments and pool expertise and resourcesto achieve our targets.
Our values underpin our People strategy. They serve as guiding
principles and help to maintain a positive, open and inclusive
culture while driving growth through high performance.
Our Diversity, Equity and Inclusion principles supplement ourvalues and are hardwired into how we operate as a business tohelp us advance, understand and support our people globally.

Burberry Annual Report 2023/24

Evolving our culture with the values
that unite us
We recognise and reward our people for what they do as well
as how they demonstrate Burberry’s leadership behaviours.
These considerations shape merit and pay decisions, annual
bonus outcomes and awards under the Burberry Share Plan forour senior leaders. A proportion of our colleague bonus is also
linked to the achievement of key targets in the Product andPlanet pillars of our Burberry Beyond strategy.

Elevating leadership capability
At Burberry, our leaders act as the guiding compass for ourpeople. Their actions and behaviours set the standard forwhat is expected and guide our organisation’s culture. During
FY 2023/24, we focused on elevating leadership capabilities
and developing a more closely connected senior leadershipcommunity. We introduced training for our Director and above
community. We also worked with an external partner to provide
our senior leadership community with sessions that identified
actions and behaviours that can elevate leadership qualities
and bolster engagement within teams.

Cultivating colleague engagement
Throughout FY 2023/24, we supported our people in building
behaviours and habits to maintain their engagement andwellbeing. Alongside the continuation of our longstanding
summer and winter programmes, offering wellbeing days andother benefits, we launched our first global B:Well Week,
featuring initiatives addressing mental, physical, social andfinancial wellbeing.
Acknowledging the challenges presented by the macro-economic
environment, we launched a dedicated financial wellbeing
microsite in November as part of Talk Money Week. This platform
offers resources and guidance on various financial topics,
providing essential support for navigating economic complexities.
In FY 2023/24, we enhanced our Diversity, Equity and Inclusion
education programmes and introduced dedicated training
sessions on the topic of psychological safety. The sessions
explored how to create high-performing teams built on trustand discussed barriers to driving a culture of inclusion, respect
and reflection.
Our global resolution framework supports our psychologicalsafety training. Launched in 2022, the initiative aims to fostera culture of speaking up and ensuring early, consistent andlasting resolution of employee concerns. Our global frameworkhas played a pivotal role in building trust and instilling apeople-centred, dialogue-driven approach to workplaceissues, and earned Burberry the Personnel Today HR Impact
Award in 2023.

Culture Hacks
This year, we introduced ‘Culture Hacks’sessions, which brought teams together to boost
understanding of our values. The immersive
sessions addressed how our Leadership Standards
guide our colleagues and empower them to workin ways that align with our values while also
progressing our Company strategy.
Colleagues took part in a number of activities,
including outlining what our values mean to themand demonstrating them through provided images.
Groups also developed two cartoon storyboards
depicting scenarios related to Burberry’s values.
In one storyline the characters adhered to Burberry’svalues and performed well, whereas in the second,
they did not, which resulted in them encountering
performance-limiting obstacles.
Following the sessions, teams reported feelinga deeper connection to and understandingof our values.

49Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

Empowering our people through Diversity, Equity and Inclusion
Our Diversity, Equity and Inclusion principles are woven into our global colleague journey, from fostering an open and inclusive
culture to investing in global education programmes, which encourage our people to be curious and challenge behaviours.

Diversity, Equity and Inclusion pillars
Attracting andretaining diverse talent

Fostering an open andinclusive culture

Diversity in our workforce
Understanding the diversity in our
workforce enables us to leverage thestrengths and experiences of our people
to deliver our business strategy.
In FY 2023/24, we launched a campaign
encouraging our colleagues to voluntarily
share their diversity information. Thisdata enables us to design policies andinitiatives to support a diverse, equitable
and inclusive workforce. For example,
we developed a trans-inclusive language
guide to support our transgender andnon-binary colleagues, as well as thoseconnected to trans and non-binary
communities, to help facilitate
conversations on this topic.

Educating and raisingawareness

All workforce1

Total: 9,336

Male: Total 3,106 (33%)
Female: Total 6,230 (67%)

Junior Managers

Senior Managers

Total: 1,142

Total: 452
Female: 740
65%

Female: 258
57%

Male: 402
35%

Male: 194
43%

Executive Committee

Leadership (Director and above)2

Total: 11

Total: 331
Female: 3
27%

Female: 190
57%

Male: 873%

Male: 14143%

1. See more details regarding our people data in our Responsibility Data Appendix 2023/24 available on Burberryplc.com.
2. Senior managers as defined in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.

50

Implementing a global
approachBurberry Annual Report 2023/24

Our commitment to fair pay
We are committed to ensuring that all our colleagues are paidin a way that is both fair and equitable. We are dedicated to thepromotion and adoption of the UK real Living Wage within ourown operations and are proud to be the first luxury retailer andmanufacturer to achieve accreditation as a UK real Living Wage
employer. In April 2024, we implemented a pay increase of 12%
for approximately 1,000 colleagues in the UK. This increase wasabove the recommended 10% real Living Wage increase.
We are also dedicated to the promotion and adoption of the UK
real Living Wage across our supply chain. Our longest-standing
supplier, Johnstons of Elgin, the manufacturer of Burberry’s
Heritage Cashmere Scarves, also holds the Living Wage
Employer accreditation.
We are committed to paying all colleagues fairly and providingthem with competitive total reward. We regularly undertake pay
analysis to ensure total reward is in line with their level andexperience, and at a competitive and fair market rate. We havevoluntarily disclosed ethnicity pay and bonus gap data for threeconsecutive years, underscoring our dedication to transparency
and monitoring progress.
Our talent acquisition strategy adopts an inclusive approach,placing value on diversity, authenticity and passion in theever-evolving fashion landscape. We partner with our professional
community network and a range of creative institutions, including
The British Fashion Council, The Outsiders Perspective and
The BRIT School, to bolster our diverse talent pipeline and drive
representation across the business.

Attracting and retaining diverse talent
Target 1: Ensure shortlists across all recruitment
campaigns are gender balanced
FY 2023/24 shortlists across all recruitment campaigns
consisted of 57% Female, 41% Male, 2% Other3

Target 2: Aim to increase hiring representation to 25%
ethnic minority candidates in the UK
FY 2023/24, hiring representation in the UK consistedof 31% ethnic minority candidates3

Target 3: Aim to increase hiring representation to 25%
Black/African‑American candidates in the USA
FY 2023/24, hiring representation in the USA consisted of 10%
Black/African-American candidates3
We focus on ensuring that every stage of our recruitment
process is fair. Steps we have taken include ensuring all job
descriptions are gender neutral, using standardised interview
forms, and running mandatory unconscious bias training fortalent acquisition teams.

The BRIT School
In 2023, we announced a partnership with The
BRIT School to support fashion education andassist young people from diverse backgrounds toenter the creative industry. As part of the two-year
collaboration, we sponsored the school’s
University of the Arts London-accredited Fashion,
Styling and Textile course which covers a range oftechnical skills, including textiles, pattern cutting,photography, styling, fashion illustration andgraphic design.
Our sponsorship of the course enables the school
to maintain world-class facilities and provide
off-site educational visits at no cost to families.
We also participated in The BRIT School’s
enrichment programme, which facilitates
mentorship and panel sessions from industry
experts, including colleagues from our Product
Design teams.
In addition, we introduced the Burberry Stepping
Stones Bursary Prize, which provides financial
support to two graduating final-year students
from global majority backgrounds pursuing
creative careers.

3. These values are based on candidates who chose to voluntarily disclose.

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Our early careers development programmes
We believe that talent can be found in a wide variety of locations.
We want to diversify where we find our talent, as well as how
we hire our people. As part of this ambition, we have enhanced
our early careers talent acquisition programmes, including our
Graduate Design Programme and our Undergraduate Programme.
In September, we welcomed our first cohort of undergraduate
placement students into a range of functions across the business,
including Corporate Responsibility, Finance, Merchandisingand Supply Chain.
The programme begins with a Brand Immersion Day, during
which the students hear from leaders across the business about
Burberry’s unique history, brand values, iconic products andglobal operations.

“I’ve already learnt a lot about Burberry
as a luxury fashion company and about
media marketing in general. I think thisplacement gives an accurate representationof what working in the fashion industry
is really like.”2023 Undergraduate Placement Student

Championing inclusivity
We have several Employee Resource Groups (ERGs) acrossBurberry to support our people and champion what mattersto them. Our core ERGs are: Women Empowered, EmpoweredBlack Network (EBN), LATINX, Sustainability, Working Parents,
Asians in America, LGBTQIA+, Women in Tech, and Disability
and Neurodiversity.
Founded by colleagues in our Creative, Digital andCommunications teams, our Disability and Neurodiversity
ERG is a network where members can feel understood andempowered. It is also an environment where colleagues canlearn more about disability, the ways it impacts our workplaceand how to advocate for change.
Our Women Empowered ERG focuses on opening inclusive
spaces for members to connect, share experiences andlearn from each other. During the year, Women Empowered
joined forces with Women in Tech and participated in the#IAmRemarkable Google empowerment pilot event, which took
participants on a journey to recognise their personal andprofessional value and shared techniques on how to be
comfortable with self promotion.

This collaborative spirit not only elevates individual skills andconfidence but also creates a powerful network that champions
women’s rise to leadership positions and excellence acrossBurberry. We continue to stay connected with our ERGs,
providing guidance on best practice to grow their influenceand impact on our global workforce.

“As a sister to someone with a visible
disability, launching an ERG for Disability
and Neurodiversity is crucial and of greatsignificance to me. It plays a vital role inraising awareness, promoting understanding,and driving meaningful action toward
creating a more inclusive environment foreveryone at Burberry. It’s not just about
advocating for myself but also for mybrother and others like him.”
Disability and Neurodiversity ERG Co-founder

Investing in the development of our people
People are our most valuable asset. We believe that continuous
growth and development equips our people to adapt to evolving
demands and increases resilience in their roles. To support
personal development, we offer a range of in‑person and virtual
resources, including our self-directed digital learning platform,
B Learning, and our internal Apprenticeship Programme.
Created in collaboration with our people and delivered by external
training providers, our Apprenticeship Programme offers Burberrycolleagues the opportunity to enhance their skills in over 30
disciplines by undertaking further education alongside their role.
We also raise awareness by facilitating conversations between
our colleagues and offering learning opportunities in an open
and supportive environment. By doing so, we empower our52colleagues to become meaningful allies, fostering a cultureof inclusivity and ensuring that every member of the organisation
understands, respects and celebrates diversity, equity andinclusion in their daily interactions and decision‑making processes.

Support Inclusion

89%

90%

completionof Episode
1 Mitigating Bias

completionof Episode2 Allyship

Burberry Annual Report 2023/24

Empowering our Burberry leaders
We believe that great leadership guides our organisation,
setting the tone for our culture and inspiring our people to reach
their full potential. We have a structured framework of threeglobal programmes, each building upon the other, designed to
guide all Burberry leaders at pivotal milestones in their careers.
Our Manager Development Programme (MDP), Senior Manager
Development Programme (SMDP) and Executive Development
Programme (EDP) have been crafted to elevate leadershipcapabilities and demonstrate our Leadership Standards.
Our EDP is tailored exclusively for Directors and above.
This programme is designed to develop senior leaders’flexibility and agility, traits crucial for success, particularly

in times of change and uncertainty. The initiative integrates
our Leadership Standards and enhances leadership capabilities
through a blend of internally and externally led workshops,
peer discussions, networking opportunities and self-directeddevelopment. Over seven months, participants engage in
10 hours of learning, including a comprehensive six-month
one-on-one coaching component in collaboration withbehavioural change specialists MindGym.
In 2023, Burberry received the Gold Brandon Hall Award*
for Best Advance in Coaching and Mentoring, recognising
innovation for the design and implementation of our EDP.

Styling 101
In line with our strategic priorities to drive
category growth and grow our elite client base,
our Retail Excellence team joined forces with
Condé Nast College of Fashion & Design to create
the Styling 101 Programme, a one-of-a-kind,
tailor-made training programme designed toelevate retail teams’ styling and selling skills.
Over 90 top performing Client Advisors from ourglobal retail network embarked on a 16-weeklearning journey, which included videos sharing
insights from both internal and external experts,
as well as challenging weekly styling tasks.
To boost engagement in the programme, wefeatured industry leaders from Vogue, including
Global Editorial Director of Condé Nast, Dame
Anna Wintour CH DBE, former Editor-in-Chief ofBritish Vogue and European Editorial Director of
Vogue, Edward Enninful OBE, and Global Network
Lead and European Deputy Editor of Vogue,
Sarah Harris. The learning journey concluded witha regional in-person graduation moment during
which participants were awarded certificates from
Condé Nast College of Fashion & Design.

* Submissions for the award were entered by organisations from around the world, ranging from large conglomerates to small businesses, government and non-profit
organisations. Entries were evaluated by a panel of veteran independent senior industry experts, Brandon Hall Group analysts and executives based on the following criteria:
1. Alignment to business need and environment
2. Programme design, functionality and delivery
3. Adoption, integration, user experience, innovation and creativity
4. Overall effectiveness, impact and measurable benefits

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PEOPLE IN OUR SUPPLY CHAIN
Introduction
Our commitment to supporting our people and their wellbeing
extends to those across our value chain. Core to this agenda
is respecting and upholding human rights, combating the riskof modern slavery, and increasing transparency throughout
our supply chain. We collaborate across our sector with ourpartners and with external experts, to protect and nurture
luxury craftsmanship and traditional techniques.

Policies
Our Responsible Business Principles are designed to ensure
the wellbeing of people involved in the manufacturing of our
products and safeguard all involved against human rights
breaches. These Principles are incorporated into our contractual
agreements with external partners during onboarding. They
include our Ethical Trading Code of Conduct, which sets out
standards to protect the rights of workers across our supply
chain, as well as policies that aim to protect vulnerable workers,
such as a Migrant Worker Policy and Child Labour and Young
Worker Policy. Any violations of our Ethical Trading Codeof Conduct must be remedied in line with our Partner
Non‑Compliance Policy.

Approach
Supply chain risk assessment
To identify our most material human rights impacts, risks andopportunities, we conduct a Human Rights Impact Assessment(HRIA) of our operations and activities and those of our extended
supply chain every two years. We have implemented this processsince 2014, and continue to evolve and develop our due diligenceapproach as well as our Ethical Trading Programme.

54

Our FY 2022/23 impact assessment identified four key areas
where human rights violations are more likely to be identified
across our finished goods vendors and raw materials suppliers.
These are:
• Working and living conditions, including access tohealth services• Worker voice• Diversity, equity and inclusion• Modern slavery
Over the last year we have implemented several mitigation
actions focused on these areas. These include:• Developing an enhanced wellbeing strategy to support our
supply chain partners in improving working conditions andworkers’ happiness at work. We have also rolled out our
Health Programme, which provides workers with vital accessto health training and services, based on their needs• Continuing to expand the reach of our Burberry-sponsored
NGO-operated hotlines, which are now accessible toapproximately 33,350 workers, a 22% increase fromFY 2022/23• Strengthening our collaboration with the International
Organisation for Migration (IOM) to provide our supply chain
partners with training and access to services regarding the
ethical recruitment of migrant workers in their own supply
chains. The training provides best practices to support the
integration of migrant workers into the local workshop population

Burberry Annual Report 2023/24

Finished goods
production sites

Total workforce
in finished goods
production sites

679

62,230

Advance ethical trading in our supply chain
Target: Continue to ensure our responsible sourcing
standards and audit requirements are upheld by partners
across our supply chain (this applies to finished goods
vendors and key raw material suppliers)
Our Ethical Trading Programme aims to ensure that theidentification, monitoring and mitigation of human rights risks
are considered at every point along our value chain, as well as
adherence to our Responsible Sourcing Standards. To achievethis, we have a programme of social compliance audits, inaddition to training and activities developed in collaboration
with experts on modern slavery and ethical trading risks,
as well as with stakeholders in our value chain.

Asia Pacific: 5%
Rest of Europe: 19%

Italy: 76%

Male: 29%

Female: 71%

Due diligence
During FY 2023/24, we refined our human rights strategic
approach for our wider value chain. To ensure we are preparedfor upcoming human rights due diligence legislation, we haveundertaken a robust review of our due diligence model with thesupport of external experts to ensure it meets the expectationsof our external stakeholders, such as international regulations,consumers, investors and governments. This included a gap
assessment, allowing us to develop an enhanced due diligenceapproach, which has been validated by external consultants
and will be implemented over the next year and beyond.
Our strategic approach, which supports our commitment tofully embed human rights into our business practices, consistsof four steps: Integrate, Enhance, Transform and Engage.
Full details of our approach is available in our Transparency
in the Supply Chain and Modern Slavery Statement FY 2023/24
available on Burberryplc.com.
Our human rights due diligence encompasses and integrates all
the activities we put in place to identify and manage social risks
in our product supply chains. Human rights due diligence dictates
the overarching set of activities we deem appropriate to:• Assess the risk, in combination with the human rights impact
assessment and via supply chain partner onboarding• Mitigate the risk, via our Ethical Trading Programme• Prevent the risk, with capacity building activities andrisk-focused awareness raising sessions deployed byinternational entities (such as IOM) designed to prevent
serious violations of human and labour rights of migrant
workers across our product supply chain• Listen to and act on workers’ voice, with a specific grievancemechanism managed by international hotline service providers

Audits to assess compliance with our Ethical Trading Codeof Conduct (social compliance audits) are carried out acrossour supply chain, with external partners conducting audits
in some cases. Under our current approach to due diligence,
all our supply chain partners are screened and assessed at
the onboarding stage to identify any human rights and modern
slavery risk. We conduct a desktop social compliance assessment
during onboarding before any new supply chain partner isapproved. This includes our partners acknowledging and signing
our Responsible Business Principles, to ensure mutual agreementthat any form of modern slavery is not permitted under any
circumstances. Based on the findings of the desktop risk
assessment, suppliers will either be approved for production
or will require a full on-site social compliance audit. All audited
facilities receive a corrective action plan, with our Corporate
Responsibility team collaborating to monitor and support
implementation. As part of our regular monitoring activities,
we aim to ensure partners’ ongoing compliance and continuous
improvement against agreed corrective action plans, providing
support and guidance where needed. The frequency and types
of audits implemented are dependent on the individual partner’s
previous audit grading and the associated risk.

Progress
We have a target that all our material1 finished goods suppliers
are audited against our Ethical Trading standards, and 71%
of our finished goods suppliers were either audited or remainedin scope of their most recent audit in FY 2023/24.
Only 1% of our finished goods supply chain partners wereidentified to have Critical or Business Critical findings and weremanaged in line with our Critical procedure in FY 2023/24.
The main areas of non-conformance with our standards wererelated to health and safety2 and working hours. We will continue
to work with our partners to identify the root cause of theseissues and implement actions to address and prevent them.
Where there is non-compliance, we require our supply chain
partners to implement a corrective action plan to make progressand meet all our corporate responsibility standards.

Our enhanced due diligence methodology is designed to ensurea robust approach across all risk management dimensions
and provide adequate abidance to upcoming key regulations
particularly those relevant to enforcing human rights protection.
1. Material meaning the top 80% of finished goods suppliers by volume and value or any finished goods supplier or material supplier who is deemed in need of an on-site social
compliance audit (this is decided based on our Social Risk matrix).
2. For example, inadequate training around health and safety, or inadequate fire safety management.

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Supply chain training
Training our supply chain partners to understand, identify,
mitigate and manage modern slavery risks is a key componentof our Ethical Trading Programme. Suppliers receive training
during onboarding to ensure they have a strong understandingof the importance of transparency during social compliance
audits and of our critical issues.
We have continued our collaboration with the IOM, broadening
our global programme of training on modern slavery to cover
country-specific risks facing migrant workers, fair and ethicalrecruitment, employer responsibilities, migrant workers’ risks
and integration of migrant workers. This training reached
246 supply chain partners across 15 countries and territories
and impacted approximately 57,690 workers in FY 2023/24.

Social Compliance Overview
FY 2023/24
Onsite social
compliance audits^

495

Desktop social
complianceassessments^

100

Finished goods
supply chain
partners that have
had a social
compliance audit
or remained in scopefrom previous audit

71%

Vendor Ownership Programme (VOP)
In order to promote social compliance audits throughout thetiers of our supply chain, we continue to extend our capacity
building programme, the VOP. This programme provides our
VOP partners in the EMEIA region with support to develop andrun their own programme of social compliance audits within
their supply chains. Regular audits focused on human rights
as well as on health and safety are conducted both by our VOP
partners’ appointed resources and by our internal Responsibility
team, against the Ethical Trading Code of Conduct. Based on
the results of the audit, improvement action plans are developed,
and shared with our partners’ supply chain, who work on
bridging the gaps identified.

We ensure a continuous in-depth analysis and investigation of
supply chain related issues through training sessions, which we
facilitate and are delivered both by the Responsibility team andexternal consultants. This year, training topics were primarily
regarding our new due diligence model that aligns to upcoming
EU human rights legislation, and how our VOP partners canensure their own due diligence processes are updated to meetthese new requirements.
We are committed to ensuring the programme remains effective
and to keep engaging new partners in the programme. During
FY 2023/24, we engaged three new partners across our EMEIA
supply chain. The programme is now in place at 24 suppliers
reaching 20,547 workers across 310 subcontractors, covering
52% of our EMEIA product supply chain.

Vendor Ownership Programme
FY 2023/24

24

310

vendors participatingin the VOP

subcontractors

Over

Covering

workers impacted
by the VOP

of our EMEIA
supply chain

20,50052%

Worker grievance mechanisms
We seek to ensure that employees and workers in our supply
chain have access to confidential support and advice. We provide
grievance mechanisms for our employees, including a global
helpline which is managed by an independent company. We alsosponsor confidential hotlines run by NGOs for workers in our
supply chain which provide advice on workers’ rights andwellbeing as well as confidential support.
Throughout the year, together with our NGO partner, we havecontinued to conduct awareness-raising sessions to promote
the use of the confidential hotline to supply chain workers,
highlighting its benefits and all services provided.
Approximately 77% of all complaint calls have been addressed
and responded to, with the remaining cases still being
addressed by the suppliers with the support of the NGO.
Grievance resolution is regularly monitored by the Corporate
Responsibility team.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

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Burberry Annual Report 2023/24

Extend wellbeing across our supply chain

Worker Grievance Mechanisms
FY 2023/24

473
calls made to hotlines
Approximately

33,350workers in our supply chain coveredby Burberry-sponsored confidential
worker hotlines
Approximately

80%of the finished goods production sites wesource from are covered by national and/or
industrial collective bargaining agreements

Our Ethical Trading Code of Conduct recognises the right for
employees to join trade unions and have collective bargaining.
Approximately 80% of the finished goods production sites wesource from are covered by national and/or industrial collective
bargaining agreements and many have established union
representation, enabling workers to remain informed andinvolved in discussions about their rights.
Further information on human rights and ethical trading canbe found on our website at Burberryplc.com. These include:• Our Ethical Trading Code of Conduct and Human Rights Policy• Our Transparency in the Supply Chain and Modern Slavery
Statement FY 2023/24

Target: Extend our Supply Chain Engagement Programme tofurther advance wellbeing, livelihoods, inclusivity and worker
voice across our supply chain
Our commitment to wellbeing extends beyond our people toengage our supply chain partners in programmes which support
the wellbeing of workers across our supply chain. Since its
inception in 2018, we have continually expanded our Worker
Wellbeing Programme, building on its benefits year on year.

Progress
Worker Wellbeing Programme
In FY 2023/24, nine finished goods suppliers participated in ourWorker Wellbeing Programme, reaching 11,650 workers in our
supply chain. The programme aims to educate suppliers aboutenhancing worker wellbeing in order to help improve employee
satisfaction as well attract and retain talent. In addition, we
engage with stakeholders to inform response actions, including
surveys to measure worker wellbeing, meeting with supply
chain partners to identify opportunities for improvement, andformulate site-specific action plans.
Our goal is to ensure continuous improvement of wellbeing
performance across our suppliers, and this year 100% of ourparticipating suppliers achieved Good1 performance.

Health Programme
Additionally in FY 2023/24, we extended our Health Programme
which was established in 2015. During the last financial year,
over 830 supply chain workers participated in the programme
and received approximately three hours training each.
To ensure the training is effective and relevant for the workers
participating, we collaborate with the supply chain partnerand medical practitioner conducting the training, to identify
what health topics should be covered. The four broad training
modules are: women’s health, men’s health, general health andmental health, and they include topics such as reproductive
health, cancer awareness and nutrition.

Worker Wellbeing Programme
FY 2023/24

911,650finished goods
suppliers participatedin our Worker
Wellbeing
Programme

workers coveredby the Worker
Wellbeing
Programme

1. Scale of ratings starting from the lowest is Unsatisfactory, Acceptable, Good and Excellent.

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COMMUNITIESIntroduction

Policies

We strive to do the right thing for our customers, our communities
and the world around us. We continue our founder’s legacy bysupporting young people, championing our communities andcollaborating with organisations to make a positive impact.

Our Community Investment Policy and Procedures sets out
our approach to community investment, charitable donations,humanitarian relief, employee volunteering and fundraising.
Our community investment methodology aligns with theBusiness for Societal Impact (B4SI) framework, a global
standard for measuring and managing social impact.

We give at least 1% of profit before tax (PBT) annually to charitablecauses, including amounts donated to The Burberry Foundation(UK registered charity number 1154468). Established in 2008,
The Burberry Foundation is governed as a separate entity andoperates independently to Burberry Group plc. As such, it follows
the regulations and laws applicable to charitable organisationsin the UK. The Burberry Foundation’s Board of four trustees
meets quarterly and is chaired by Christopher Holmes, Baron
Holmes of Richmond, MBE.

58

Approach
Our contributions are directed towards advancing our
Communities strategy, ensuring meaningful impact andsustainable progress in our core focus areas.
In FY 2022/23, we refined our Communities strategy tofocus on improving the lives of young people. We do this by
supporting charitable initiatives which inspire young people tocome together in safe environments to explore their creativity,
develop life skills and broaden career horizons.

Burberry Annual Report 2023/24

Burberry Inspire

Inspire young people to create
better futures

Burberry Inspire is a global programme dedicated to providing
safe spaces for young people to explore their creativity, develop
new skills and build a more positive future.

Target: Positively impact 500,000 people between
FY 2022/23 and FY 2025/26, particularly young people
hailing from underserved communities

With a focus on young people aged 10 to 24, Burberry Inspirebrings all youth-focused activities conducted by The BurberryFoundation and Burberry Group plc together under a single
identity. Burberry Group plc partnerships focus on in-school
programmes, and The Burberry Foundation on communitybased youth organisations. Through a network of partnerships
in nine regions across the world, the initiative has impact at bothglobal and local levels.

Providing support to the communities we interact with is key todelivering maximum positive impact. We continue to expand ourprogrammes to inspire young people globally, fostering
creativity and building critical life skills.

Progress

Burberry Inspire offers skills development in a variety of fields,from creative arts and design to sports and STEM-related
activities, entrepreneurship and initiatives aimed at breaking
down educational barriers. The programme’s ambition is tocreate opportunities for more than 500,000 young people
between FY 2022/23 and FY 2025/26 by unlocking theircreativity and driving positive change in their lives as well as
in their communities.

This year, 219,377 people were positively impacted throughcommunity programmes supported by Burberry Group plc
and The Burberry Foundation. This achievement adds to our
cumulative total of 380,162 people since FY 2022/23, advancing
our progress towards our target of 500,000 by FY 2025/26.
Central to our performance on this target is our flagship
Burberry Inspire programme, which serves as the cornerstoneof our efforts in supporting young people.

The Burberry Inspire programme’s global reach
The Burberry Inspire programme is supported by a global network of partnerships across our key operational regions of EMEIA,
Americas and Asia Pacific.

13

4

14

15

2

5

17
3
16

8
7

11

6

9

Foundation Funded
1. The International Youth Foundation(Global partner)
2. OnSide, UK
3. Save the Children, Poland
4. Girls Inc. of New York City
5. New York Edge
6. Heart of Los Angeles
7. Community Youth Center of San Francisco
8. CSV Milano
9. Co&So, Florence, Italy
10. Future for Youth Foundation, South Korea
11. Girl Scouts of Japan
12. Hong Kong Youth Arts Foundation

10
1

12

Burberry Plc Funded
13. The BRIT School
14. The Outward Bound Trust
15. Castleford Tigers Foundation
16. Shanghai Youth Development Foundation
17. China Soong Ching Ling Foundation

Foundation funded
Plc funded59

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

Creative Youth Development framework
At the heart of Burberry Inspire is a commitment to respecting
the diversity of young people’s lived experiences, valuing theirperspectives, elevating their authentic voices, and supporting
their creative development and expression. This approach toyouth development, referred to as Creative Youth Development(CYD), recognises that creativity takes different forms. For
example, some young people may demonstrate their creative
spark through painting, music, theatre or dance, while others
may express themselves in a STEM-related field.
Drawing on insights from the CYD framework, Burberry Inspirechannels the power of creativity to cultivate young people’s
self-confidence, mental health and wellbeing, sense of identityand belonging, and aspirations for the future. The programme’s
theory of change revolves around engaging and nurturing young
people’s creativity, providing well-designed opportunities for
growth and learning, and empowering them to contribute
positively to their communities.

Fostering creativity in education
We support fashion students from underrepresented groups
through charitable partnerships with creative institutions aroundthe world.
Since 2012, we have partnered with the Royal College of Art(RCA) to establish a creative arts scholarship programme,
supporting the next generation of creative leaders fromunderrepresented communities. This programme has expanded
globally to offer more equal access to creative arts programmes
at some of the world’s most esteemed creative institutions,
including The New School’s Parsons School of Design in New
York City, Institut Français de la Mode in Paris, and Central SaintMartins in London.

The expansion of the creative arts scholarships, alongside ourexisting partnership with the RCA, is enabling over 50 students
to benefit from education programmes in the arts between
2020 and 2025.
We also continue to donate fabrics, yarns and trims to charities
and design schools globally. In FY 2023/24, we donated over
28,500 metres of fabric to the British Fashion Council (BFC)as part of its Student Fabric Initiative, which helps students
studying at BFC Colleges Council member universities toaccess high quality materials. In conjunction with the yearly
donation project, students were invited to submit a creative
design proposal, fully realisable using deadstock fabrics and/or
components. Burberry colleagues sat on the judging panel andhelped select four finalists to showcase their work at the BFC
Institute of Positive Fashion Forum in April 2024.

Protecting communities
We support causes that are important to our colleagues
and back disaster relief.
For example, in September 2023, northern Africa was struckby two devastating natural disasters: an earthquake in Moroccoand catastrophic flash flooding in Libya. In response, we
contributed to British Red Cross appeals for both events.
Our donations supported search-and-rescue operations andprovided vital assistance to those affected. Furthermore,
we matched colleague donations to these relief efforts,
doubling the impact of our support to the relevant British
Red Cross appeals.

Save the Children partnership
In October 2023, The Burberry Foundation, supported bydonations made by Burberry Group plc and in collaboration
with Save the Children, established Life Chances to support
young people affected by the humanitarian crisis in Ukraine.
The programme is part of a global partnership between
The Burberry Foundation and Save the Children.
Life Chances focuses on supporting Ukrainian refugees andPolish young people aged 14 to 18 in Poland. The programme
is implemented in partnership with FRSI, Save the Children’s
local partner in Poland, and aims to enhance education, career
opportunities and emotional wellbeing, while empowering
young people to be agents of change in their communities.
Education and social activities are vital during times of crises,
fostering purpose, identity and belonging for young people.
Schools in Poland are struggling to meet the educational needsof an expanding population of Ukrainian refugees.
Life Chances aims to bridge the gaps, offering holistic support
to young people as they adjust to life in their host country.
The programme was developed in consultation with Ukrainian
refugees to prioritise their voices and needs. It was shaped by
the active involvement of young displaced adolescents, parents,

60

caregivers, community leaders and professionals, including
teachers, librarians and social workers, as well as mental healthand psychosocial support specialists. Their input, blending
personal and professional experiences, has significantly
influenced the programme’s content.

Burberry Annual Report 2023/24

Increase volunteering opportunities
for colleagues
Target: 25% of Burberry colleagues actively engaged
in volunteering and fundraising activities by FY 2025/26
Facilitating volunteering and fundraising opportunities for ourcolleagues allows us to positively impact their wellbeing while
supporting the communities where we operate. Our people canvolunteer their time to causes which are particularly meaningful
to them or aligned to Burberry’s Communities strategy. Thisapproach means we can positively impact both our local andglobal communities.

Progress
All Burberry colleagues are allotted up to three volunteeringdays per year which, in FY 2023/24, they used to support 139
different volunteering and fundraising projects. During theyear, for the first time, Burberry colleagues were able to actively
support young people participating in the Burberry Inspire
programme through a variety of volunteering activities, including
workshops, leadership circles and collaborative creative projects.
These activities were in addition to local employee-led teambuilding initiatives and targeted skills-based opportunities,
such as career advice panels.

219,377

380,162

people positively
impacted in
FY 2023/24

people positively
impacted cumulatively
since FY 2022/23

We also provide match funding up to a value of £3,000 for team
activities involving five or more colleagues. This allows colleagues
to provide even more support to the causes they care about andencourages teams to collaborate outside of their normal roles.

Spark, Burberry’s volunteering andfundraising platform
Spark, launched in FY 2023/24, is our global volunteeringand fundraising platform, which collaborates with over two
million non-profit organisations across the globe. Acting asa central hub, the platform allows colleagues to get involvedin volunteering activities or to create their own opportunities
as individuals or part of a team. Colleagues can also raise funds
and apply for match funding through the platform, as well as keep
up to date with community activities and partnership launches.

Volunteering and Fundraising
FY 2023/24
8%1 of colleagues actively
engaged in volunteeringand fundraising activities

2,799 total
volunteering hours

139 volunteering andfundraising projects
supported by Burberrycolleagues

92 charities supported
through volunteering,
match funding andin‑kind donations

1. Figure excludes colleague headcount where there are data restrictions on the Sparkvolunteering and fundraising platform.

Community Champions
Our global network of Community Champions helps to organiseand promote local community projects, supporting colleagues
to make a positive impact in their communities. We currently
have 115 Community Champions globally, with each member
facilitating volunteering and fundraising activities, raisingawareness of important causes, driving projects with Burberry’s
charity partners and initiating new local non-profit partnerships.
Acting as a Community Champion offers Burberry employees
opportunities to extend their skills beyond their usual roles, asseen in a recent initiative led by Burberry’s Women in Technology
Group based in our Leeds office. Employees volunteered at
local schools to inspire the next generation and introduce themto the diverse career paths available in technology. Activities
included panel discussions and interactive sessions on
business analysis. Through this initiative, over 200 young
people in Yorkshire were reached via volunteering.
Through our partnership with the Outward Bound Trusteducation charity, Burberry Community Champions steppedout of the work environment to inspire young people as partof a programme of overnight excursions and outdoor pursuits.
In FY 2023/24, Community Champions worked with students
from secondary schools in London, Leeds, Castleford and

Keighley, all regions connected to Burberry. Through activities,
including abseiling, hiking and canoeing, the students wereencouraged to push their boundaries, awaken their curiosityand build their resilience.

61

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

PARTNERING FOR IMPACT
We work with organisations to help us drive change and advance our Burberry Beyond strategy.
Our partners include:
The Fashion Pact
We are members of The Fashion Pact, a global initiative of companies in the fashion industry, which aims to forge a nature-positive,
net zero future for fashion. Our CEO is a member of the steering committee. This partnership provides support to both the Productand Planet pillars of our Burberry Beyond strategy. As a member of The Fashion Pact, we collaborate with peers to support our
European suppliers with the transformation of energy use at their facilities through the European Accelerator Programme.
The programme focuses on improving data collection, guidance on best practice and financing decarbonisation.

Textile Exchange
We are a member of the Textile Exchange, a global not-for-profit organisation driving positive action on climate change.
We participate in the Textile Exchange’s annual Corporate Fibre and Materials Benchmark (CFMB) survey and in FY 2023/24, Burberrycolleagues across Corporate Responsibility, Materials Innovation and Supply Chain attended the Textile Exchange Conference.
We are also part of a cross-industry Life Cycle Assessment (LCA) coordinated by the Textile Exchange to better understandopportunities to improve the environmental impact of cashmere production (more details of this can be found on page 44).

Institute of Positive Fashion – Circular Fashion Innovation Network
We are part of the Circular Fashion Innovation Network, an industry-led programme spearheaded by the British Fashion Counciland UK Fashion and Textile Association in partnership with UK Research and Innovation.

Corporate Water Leaders
We work closely with other brands as part of the Corporate Water Leaders group, a global network of working groups dedicatedto solving industrial water challenges and furthering water stewardship. The initiative is led by Global Water Intelligence (GWI).
We are members of the Textile and Leather Group, which brings major brands together to pave the way for greater operational
resilience and more environmentally sustainable business practices within the industry’s global supply chain.

UNFCCC Fashion Charter
Burberry is a signatory to the UN’s Fashion Industry Charter for Climate Action which aims to drive change across the fashionindustry, with an initial goal of reducing aggregate GHG emissions by 30% by 2030. Aligned with the goals of the Paris Agreement,
the Charter defines the issues that will be addressed by signatories. These include reducing carbon impacts at production stage,
selecting climate-friendly and sustainable materials, exploring circular business models, improving consumer dialogue andawareness, and working with policymakers to catalyse scalable solutions.

ZDHC Foundation
Since 2014, Burberry has been an active member of the ZDHC. Burberry colleagues have served on the Board of the ZDHCFoundation since June 2018 and, since December 2022, have chaired the ZDHC Board of Directors.

BSR Human Rights Working GroupWe became members of Business for Social Responsibility (BSR) in 2022 and joined its Human Rights Working Group, which wasestablished to help companies implement the UN Guiding Principles on Business and Human Rights (UNGPs). It supports companies
in sharing best practices, challenges, and experiences implementing the UNGPs and provides insight on human rights approaches
and emerging issues.

United Nations Global Compact
We are a longstanding member of the UN Global Compact and compete an annual Communication on Progress disclosure acrosshuman and labour rights.

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Burberry Annual Report 2023/24

63

Burberry Annual Report 2023/24

Strategic Report | Sustainability Bond – Use of Proceeds Report

SUSTAINABILITY BOND –USE OF PROCEEDS REPORT
Burberry is committed to using its position and influence todrive social and environmental improvements in the value
chain. We see innovation as key to advancing our sustainability
efforts, from the sourcing of raw materials to the manufacturingof finished products and distribution through our stores andwholesalers. We enlist the support of investors to deliver theseambitions by linking Burberry’s Sustainability strategy to its
funding requirements.
Burberry issued a debut five-year sterling Sustainability Bondon 21 September 2020 for £300 million at a coupon of 1.125%(the ‘Sustainability Bond’). As part of the Sustainability Bond
Framework1 (the ‘Framework’), a commitment was made to
publish a use of proceeds report within one year of the issuanceof the bond and annually thereafter.
This report constitutes Burberry’s fourth use of proceeds report
to investors and covers the allocation of proceeds from theSustainability Bond by category per the Eligibility Criteria as
defined in the Framework.

Eligibility Criteria and oversight
Our Eligibility Criteria categories are:
• Green buildings• Environmentally sustainable management of living natural
resources and land use• Pollution prevention and control (including waste prevention,
waste reduction and waste recycling)
Burberry’s Responsibility targets are owned by senior leadership
across all regions and key functions and progress is reviewed
by the Sustainability Committee.
The Sustainability Committee was established in 2019 to review
and oversee the Group’s strategy on ESG issues related to our
Sustainability agenda. The Sustainability Committee convened
nine times during FY 2023/24 and is chaired by our CEO.
More information on the Sustainability Committee can befound on page 36 of our Environment and Social Responsibility
section and page 107 where our full governance framework
is outlined in the Corporate Governance Statement.
In addition to the Sustainability Committee, ESG matters are
regularly discussed at the Ethics and Risk Committees andupdates are shared with the Board and the Audit Committee.
The Sustainability Committee considered the Eligibility Criteria
in the Framework and reviewed the spend on projects eligible
for financing under the Sustainability Bond and allocated theproceeds accordingly.

Allocation of proceeds
The proceeds of the Sustainability Bond have been allocatedacross the three categories outlined in the Framework.
In accordance with the Framework, these eligible projects andspend were completed within the three-year period preceding
and the financial years since the issuance of the Sustainability
Bond in September 2020. The allocation across categories
is summarised below.

Unallocated proceeds
There are no unallocated proceeds from the bond for FY 2023/24.
All proceeds have been fully allocated across the three
categories in scope.

Project examples
Green buildings:
Projects include the financing or refinancing of properties with
relevant certification. For existing buildings, certification musthave been received within the last four years.
Certifications include:
a. LEED: Platinum or Gold levelb. BREEAM: Excellent or Outstanding level
Environmentally sustainable management of living natural
resources and land use
As in FY 2022/23, organic cotton does not meet the Eligibility
Criteria under the Framework document and therefore noproceeds have been allocated for this fiscal year.
Pollution prevention and control
All of our consumer paper-based packaging is widely recyclableand (FSC®)2 certified, reflecting our commitment to support zerodeforestation and sustainable forest management.
In prior years, we allocated proceeds against packaging
procurement where recycled content was more than 20%.
The Green Building allocation achieved the spend hurdle rate
in FY 2023/24, therefore we deselected the category forassurance on the Use of Proceeds. It was, however, includedin the scope 3 emissions section of the Sustainability report.

External assurance of the use of proceeds
Burberry has appointed PricewaterhouseCoopers LLP (PwC)
to provide independent limited assurance over the allocationof use of proceeds. Information subject to assurance isdenoted with a ‘ ’. PwC’s Independent Limited Assurance Reportand Burberry’s Sustainability Bond Framework are available
on Burberryplc.com.

Categories of spend

Total allocation from21 September 2017 to
30 March 2024£m

Green buildings

145.4

9

Environmentally sustainable management of living natural resources and land use

90.2

15

64.4

12

Pollution prevention and control
Total

United Nations
Sustainable Development
Goals (UN SDGs)

300.0

1. The Framework can be found at: https://www.burberryplc.com/en/investors/debt.html.
2. In order to calculate the percentage of FSC® certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging
suppliers regarding the value of certified paper packaging sold to Burberry.
Burberry has appointed PricewaterhouseCoopers LLP (PwC) to provide limited assurance over the allocation of use of proceeds. Information subject to assurance is denotedwith a symbol. PwC’s Independent Limited Assurance Report and Burberry’s Sustainability Bond Framework are available on Burberryplc.com.

64

Burberry Annual Report 2023/24

Strategic Report | Non-Financial and Sustainability Information Statement

NON-FINANCIAL AND SUSTAINABILITY
INFORMATION STATEMENT
This section of the strategic report constitutes Burberry’s Non-Financial and Sustainability Information Statement, produced to comply
with sections 414CA and 414CB of the Companies Act 2006.
The information listed is incorporated by cross-reference.

Reportingrequirement

Policies and standards which govern
our approach

Information necessary to understand our businessand its impact, policy due diligence and outcomes

Environmental
matters• Global Environmental Policy• Responsible Sourcing Policy• Chemical Management Standards• Code of Conduct• Environmental and Social Responsibility section,
pages 35 to 62• Impact section on Burberryplc.com• Task Force on Climate-related Financial Disclosures(TCFD), pages 66 to 79

Employees• Code of Conduct• Our Culture and Values• Global Health and Safety Policy• Ethical Trading Code of Conduct• Global Diversity, Equity and Inclusion Policy• Directors’ Report, pages 143 to 146• Directors’ Remuneration Report, pages 125 to 142• Our Purpose and Values, page 14• Stakeholder Engagement, pages 80 to 82• Gender and Ethnicity Pay Gap Report on Burberryplc.com• Environmental and Social Responsibility section,
pages 35 to 62

Respect forhuman rights• Human Rights Policy• Ethical Trading Code of Conduct• Child Labour and Young Worker Policy• Migrant Worker Policy• Data Protection Policies• Information Security Policies• Model Wellbeing Policy• Global Diversity, Equity and Inclusion Policy• Partner Non-Compliance Policy• Impact section on Burberryplc.com• Transparency in the Supply Chain and Modern Slavery
Statement on Burberryplc.com

Social matters• Ethical Trading Code of Conduct• Local Stakeholder Engagement Policy• Volunteering and Match Funding• Impact section on Burberryplc.com

Anti-corruption
and anti-bribery• Anti-Bribery and Corruption Policy• Cash Acceptance Policy• Fraud Risk Management Policy• Reflecting the needs of our stakeholders, People, page 80• Reflecting the needs of our stakeholders, Customers,
page 80

Additional
disclosure• Our Business Model, page 14 to 15• Environmental and Social Measures (Non-financial KPIs),
pages 30 to 33• Risk and Viability Report, pages 83 to 90• Our Purpose and Values, page 14

65

Burberry Annual Report 2023/24

Strategic Report | Task Force on Climate-related Financial Disclosures

TASK FORCE ON CLIMATE-RELATEDFINANCIAL DISCLOSURESFCA Listing Rule 9.8.6R (8)The Company has included in its Annual Report climate-related financial disclosures consistent with the Task Force on Climaterelated Financial Disclosures (TCFD) recommendations and recommended disclosures.

TCFD recommendations and recommended disclosures
Governance
Disclose the organisation’s
governance aroundclimate-related risks andopportunities.

Strategy
Disclose the actual andpotential impacts ofclimate-related risks andopportunities on theorganisation’s businesses,
strategy and financial
planning where suchinformation is material.

Risk management
Disclose how theorganisation identifies,
assesses and manages
climate-related risks.

Metrics and targets
Disclose the metrics
and targets used to assess
and manage relevant
climate-related risks andopportunities where suchinformation is material.

66

a. Describe the Board’s oversight of climate-related risks
and opportunities.
b. Describe management’s role in assessing and managing
climate-related risks and opportunities.

Disclosure location within
Annual Report 2023/24
Task Force on Climate-related
Financial Disclosures,
pages 66 to 79.

a. Describe the climate-related risks and opportunities
the organisation has identified over the short, medium
and long term.

Task Force on Climate-related
Financial Disclosures,
pages 66 to 79.

b. Describe the impact of climate-related risks andopportunities on the organisation’s businesses, strategy
and financial planning.

Burberry Beyond Climate
Positive 2040 report on
Burberryplc.com.

c. Describe the resilience of the organisation’s strategy,
taking into consideration different climate-related scenarios,
including a 2°C or lower scenario.
a. Describe the organisation’s processes for identifying
and assessing climate-related risks.

Risk and Viability Report,
pages 83 to 90.

b. Describe the organisation’s processes for managing
climate-related risks.

Task Force on Climate-related
Financial Disclosures,
pages 66 to 79.

c. Describe how processes for identifying, assessing andmanaging climate-related risks are integrated into theorganisation’s overall risk management.
a. Disclose the metrics used by the organisation to assessclimate-related risks and opportunities in line with its
strategy and risk management process.

Task Force on Climate-related
Financial Disclosures,
pages 66 to 79.

b. Disclose scope 1, scope 2 and, if appropriate, scope 3
GHG emissions and the related risks.

Planet pages 41 to 47.

c. Describe the targets used by the organisation to manage
climate-related risks and opportunities and performanceagainst targets.

Task Force on Climate-related
Financial Disclosures,
pages 66 to 79.

Task Force on Climate-related
Financial Disclosures,
pages 66 to 79.

Burberry Annual Report 2023/24

Our approach to TCFD reporting

Management oversight

Burberry has a longstanding commitment to addressing theimpacts of climate change and is taking significant steps toadvance our decarbonisation agenda. Taking into consideration
the net zero commitments of the countries we operate in, we
have pledged to become Net Zero by 2040, which is ahead of
the UK Government’s Net Zero by 2050 target and the EU’s aim
to be ‘climate-neutral’ by 2050. Our emission reduction targets
are aligned to a 1.5°C pathway and have been validated by the
SBTi. To achieve this, we are committed to continued emissions
reductions across our business and supply chain. See the Planet
section on pages 41 to 47 for further details.

The Company’s strategy on environmental and climate-related
issues is governed by the Sustainability Committee, whichconvened nine times in FY 2023/24 and is chaired by the CEO.
The Committee plays an important decision-making role insupporting Burberry’s Responsibility strategy, with membership
including senior leaders from across the organisation who areresponsible for the execution of this within their respective
business areas. Topics discussed by the Sustainability
Committee in FY 2023/24 included the net zero transition plan,
ReBurberry initiatives and our nature strategy. The Company
Secretary or their designate is secretary to the Committee.

Since 2016, we have reduced our market-based scope 1 and 2
emissions by 93%, maintaining our commitment to consume
100% of our electricity from renewable sources. In addition,
we have reduced our scope 3 emissions by 45.9%^ since our
FY 2018/19 base year, against which we are measured for our2030 and 2040 science-based targets.

During FY 2023/24, the Board received two updates from theSustainability Committee, which included progress against theCompany’s sustainability-related goals and targets. The Board
also received an update on Burberry’s climate ambitions,
including the revision of our scope 1 and 2 carbon reduction
target, which was approved.

We have adopted the recommendations of the TCFD andsince FY 2019/20 we have reported on its four thematic areas:
Governance, Strategy, Risk management, and Metrics andtargets. This section builds on our previous reports anddescribes our approach to scenario analysis, the results of the
scenario analysis and the actions taken in response to theseresults. Climate change and the transition to a low-carbon
economy also present opportunities for efficiency, innovationand growth, all of which are built into our net zero ambition.

The Risk Committee, which is chaired by the CFO, receives
annual updates on the outputs of the climate-related scenario
analysis and related proposed TCFD disclosures led by the
Sustainable Finance team. The Audit Committee also receives
this update on an annual basis. The Board reviews our climaterelated reporting as part of its overall assessment of the fair,balanced and understandable nature of the Annual Report.

The Burberry TCFD Basis of Reporting outlines how we have
prepared the Financial Statements and disclosures, considering
relevant TCFD guidance publications and the principles for
effective disclosure. We have engaged EY as independent
auditors to provide a limited assurance statement in accordancewith ISAE 3000 on our FY 2023/24 TCFD disclosures. The TCFD
Basis of Reporting and Assurance Statement are available
on Burberryplc.com.

Burberry seeks to ensure that our Board and senior leadershiphave the relevant knowledge and skills to help us build abusiness that is both successful and responsible. Details on
the sustainability skills and experience of these Board members
can be found on pages 95 to 99.

Governance
Board oversight
The Board is responsible for ensuring our approach tosustainability is integrated into and implemented across thebusiness. The governance framework of committees andadvisory forums provide updates and key information to theBoard to ensure it can make informed decisions. Our governanceframework is outlined on page 107 and more detail on theroles of the Board and its Committees is set out in the Matters
Reserved for Board Decision, and its Committees’ terms ofreference, which are available in the Corporate Governancesection of Burberryplc.com. When reviewing annual budgets,the Board considers climate-related issues, including spend
associated with our Burberry Beyond strategy. The Board also
considers colleague bonuses aligned to our responsibility
targets. The Board is also responsible for overseeing andmonitoring the management of risks and opportunities,
including those related to climate change.
Further information on the risk management approach isincluded in the Risk and Viability Report on pages 83 to 90.

Knowledge and skills

We are committed to having a suitable pool of internalsustainability experts across our business with the relevant
knowledge and skills to support decision-making. Team
members involved in the execution of the Burberry Beyond
strategy participate in external training courses and educational
events, including the Accounting for Sustainability Academy,
to keep abreast of relevant climate- and nature-related topics.
We also educate employees on various sustainability-related
issues through frequent engagement, focused events, strategic
communications and volunteering opportunities. See
Embedding Burberry Beyond on page 36 for further details.

Remuneration
The remuneration of the Executive Directors is partly linked toour progress in building a more sustainable future, including
progress towards the Group’s longer-term climate goals, via theannual bonus plan and a sustainability underpin in the Burberry
Share Plan (BSP).
In FY 2023/24, 25% of the annual bonus for Executive Directors
was once again linked to performance against strategic objectives
linked to our strategy and brand as well as our environmental
and social targets. There will be a sustainability underpin in the2024 BSP award for the Executive Directors.
In FY 2023/24 we began linking a proportion of our annual
corporate bonus plan for the wider workforce to the achievementof sustainability metrics in our Product and Planet pillars.
This has been well received by colleagues and demonstrates
the value we place on sustainability as part of our strategy.
See Embedding Burberry Beyond on page 36 for further details.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

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Burberry Annual Report 2023/24

Strategic Report | Task Force on Climate-related Financial Disclosures

Strategy

Background to scenario analysis

This section describes our key climate-related risks andopportunities, their potential impact on our business and its
resilience to such impacts, which has been assessed using
scenario analysis as described below. Our strategy to address
climate-related risks is integrated into our business strategy
and decision-making in areas such as capital allocation,
investment appraisal, supply chain planning and raw
material sourcing.
Our Burberry Beyond 2040 report details our strategic direction
and plan to reduce GHG emissions across our operations andsupply chain. With the majority of our GHG emissions arisingfrom our extended supply chain, we are focusing on five key
impact areas that each have defined actions to drive progress:
Raw Materials, Circularity, Product-related Waste, Supply Chain
Decarbonisation and Sustainable Transportation. Further details
on initiatives under each of these areas are provided in the
Decarbonising our Value Chain section of the Burberry Beyond
Climate Positive 2040 report, and in the Environmental andSocial Responsibility section on pages 35 to 62.

Scenario analysis is a process for identifying and assessing
the potential implications of a range of plausible future states
under conditions of uncertainty. Scenarios are hypotheticalconstructs and not designed to deliver precise outcomes orforecasts. Instead, scenarios provide a way for the businessto consider how the future might look if certain trends continue
or certain conditions are met, and to assess Burberry’s
strategic resilience. Scenario analysis is led by Sustainable
Finance, with input from Supply Chain, Corporate Responsibility,
Commercial and Finance teams across the business.

Our approach to scenario analysis
Our scenario analysis incorporates the Company’s financial
forecasts, operational footprint, supply chain information andenvironmental data to create a digital twin representation of thebusiness. The product portfolio is modelled based on our
strategy, with the Company’s value chain being modelled using
historical data. This information is combined with industry
reference scenarios on climate emission pathways, including
assessments by the Intergovernmental Panel on Climate
Change and International Energy Agency, to consider the
potential impact of physical and transition risks on the business.

Our scenario analysis considers the impacts of both physical and transition risks:
Physical Risks

Transition Risks

Definition

These are risks related to the physicalimpacts of climate change. They include
both acute weather events, such as
heatwaves, and chronic long-term climate
shifts, such as rising sea levels.

These are the risks that may occur while transitioning
to a lower-carbon economy, such as policy, market,
reputation and liability risks. The level of risk depends
on the nature and speed of the transition.​

Timing ofimpacts

Acute physical risks are already occurring,and these are expected to happen
more often and with greater severity.
Chronic physical risks are more likely
in the long term.​

The timing of transition risks is uncertain, but they
are more likely to occur in the short to medium term.​

In addition, we have considered the risk that a market shockcaused by transition to a low-carbon economy would impact theCompany’s cost of debt and how low-carbon innovations would
devalue the Company’s technology. We have concluded thatthese risks are not significant at this time due to the Company’s
net cash position, focus on renewable energy consumption andabsence of carbon-intensive machinery. We will continue tomonitor and report on these risks.

Scenarios evaluated
The impact of physical and transition risks has been consideredover a range of emission trajectories and global averagetemperatures. This is in line with the recommendations of the
TCFD to select a set of scenarios that cover a reasonablevariety of future outcomes, both favourable and unfavourable.
We have also included a low-emissions scenario aligned to
the Paris Agreement aspiration to limit global warming to 1.5°C,
as per the TCFD recommendation that organisations use a 2°C
or lower scenario.

68

These are defined opposite, alongside a summary of thepotential global impact of physical and transition risks underthese scenarios.

Time horizons considered
We have defined our time horizons as short term (five years),
medium term (five to 20 years) and long term (more than 20
years). The time horizon used for our detailed scenario analysis
is a short-term outlook of five years, during which we can
influence decisions through strategy, capital allocation, costs
and revenues. Typically, three years is used for our financial
and operational planning, as this is sufficient to cover almost
all approved capital expenditure projects, and most current
business development projects will be completed in thethree-year period. Our viability assessment is also aligned tothis time period, with going concern typically considered over
18 months. We have extended the period to five years usinga growth assumption, which more closely aligns with our
expected asset lifetimes and strategic plans.

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Average global temperature risecompared to pre-industrial levels by 2100

1.5°C

2°C – 3°C

> 4°C

Scenario description

Global impact of climate-related risks over time

The world takes immediate and substantial
action in line with the Paris Agreement
to lower emissions.

To limit global warming to 1.5°C compared to preindustrial levels, collective global action will be needed.
The nature and speed of the transition to a low-carbon
economy are uncertain, but transition risks are more likely
to occur in the short to medium term. By taking suchcollective action, the impact of physical risks occurringin the long term may be reduced.

The world partially implements policies
to lower emissions with no further
actions taken.

If limited global action is taken to tackle climate change
and reduce GHG emissions, transition risks would reducein the short term. However, inaction would increase theseverity and frequency of physical risks in the long term.

The world takes limited or no actions
to limit emissions.

Without any global action at all, transition risks would be
limited and the impact of physical risks would become
even greater in the long term.

Building on our detailed analysis, which covers a five-year time
horizon, we have also considered the impact of climate-relatedrisks in the short-to-medium time period of 10 years, which wewill use to support our strategy in this time frame.

Summary of scenario analysis results
Our scenario analysis considers the financial impact ofclimate-related risks on Burberry. This entails estimating theloss of value to the Company’s discounted cash flows overthe next five years assuming no mitigating actions are taken.
Overall, the results of our scenario analysis indicate that thephysical and transition risks associated with climate change
could impact the business in the short, medium and long term.
The size of the impact will depend on the nature and speedof the global transition towards a lower-carbon economy.
The 1.5°C scenario would have most impact on Burberry in the
short-to-medium term before considering any mitigating actions.
Beyond a five-year time horizon, the level of uncertainty increases.
Transition risks are expected to be the most impactful in the
short-to-medium term, continuing the trends our five-year
scenario analysis have identified. Physical risks are expected
to become most impactful in the long term, with the size of the
impact dependent on the success of global initiatives to limit
the repercussions of climate change. These long-term physicalrisks may disrupt our supply chain and create operational
challenges. Our commitment to more sustainable, low-impact
materials and our continued focus on innovation are key tolimiting this impact. We will remain agile and continue to monitor
this risk, informed by the latest scientific understanding ofclimate change. We will also continue to consider and identify
how the results of our scenario analysis may be utilised to
inform future strategic planning where appropriate.

Each physical and transition risk was modelled independently
due to the complexity and uncertainty associated withmeasuring the interconnectivity of risks and how they influenceeach other. Planned future mitigating actions, including those todeliver our ambition to be Net Zero by 2040, have not beentaken into consideration in the scenario analysis.

Summary of response to scenario analysis results
At Burberry, we believe our long-term success depends on
actively addressing the potential impact of climate-relatedrisks and adapting to potential opportunities. As such, we haveadopted strategies and actions to mitigate these risks andensure our strategy adapts to the potential opportunities. Where
such actions have quantifiable investments associated withthem, these are embedded within our Board-approved financial
plans, which are translated into annual budgets and detailed in
the Our Strategic Response section in the Risk tables on pages
70 to 74. We have also considered the impact of climate change
in the preparation of our Financial Statements, which can beseen on page 165.
As the scientific understanding of climate change andavailability of data evolves, we expect greater rigour andsophistication in the approach to scenario analysis. We aim
to continue developing and updating our scenario analysis
to support our assessment of the resilience of our businessstrategy to climate-related risks and ensure relevant mitigating
strategies are in place.
The Risk tables on pages 70 to 74 show the detailed results ofour scenario analysis and our strategic response. The financial
impact represents the estimated loss of value to the Company’s
discounted cash flows over the next five years, assuming no
mitigating actions are taken. This impact has been rated as‘High’, ‘Medium’ or ‘Low’, reflecting materiality to the Company’s
Financial Statements.

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Detailed results of our scenario analysis
ImpactPotential impact on Burberry’s cumulative discounted cash flows over five years, assuming no mitigating actions are taken:
Low: (<£1m – £25m)

Medium: (£25m – £125m)

High: (£125m – £250m)

Physical risk
Global emissions environment
Average global temperature rise compared topre‑industrial levels by 2100
Impact> 4°C

2°C – 3°C

1.5°C

MediumMediumMediumTimeframe for most significant impact: long term

How we modelled the risk

Our strategic response

We quantified how extreme weather events and chronicchanges in the climate might disrupt manufacturing anddistribution of goods, damage assets and impact retail activities
leading to changes in consumption patterns. We have also
considered how chronic changes in climate may impact yields
of key raw materials we use.

• We are committed to reducing our impact on the environment,
promoting more sustainable practices in our supply chain,and ensuring that we build resilience in our operations• We continue to develop our business continuity andresilience plans to allow us to respond to the impactsof physical risks at key locations, such as our distribution
centres. Our Incident Management teams were convened
to respond to weather-related events in FY 2023/24• We continue to consider how we can increase ourunderstanding of the impact current and future extreme
weather events have on our business, and we areincorporating climate-related considerations into our supply
chain partner selection processes• To mitigate water and nature-related risks, we have partneredwith a major cotton supplier to source cotton produced
using both organic and regenerative practices. This cotton
is currently in pilot production in our UK-based internal
manufacturing sites• We require regular effluent testing and work with over
40 wet processing facilities to monitor and improve effluent
management practices. We also work with suppliers to
identify water-saving opportunities, such as water recycling
and leak repairs• We continue to monitor and adapt our supply chain to ensure
we are able to both mitigate climate-related risks to theGroup and achieve our Net Zero by 2040 ambition• The quantifiable financial investments associated withthese actions in our supply chain are included in Burberry’s
financial plans

Potential areas of impact
An increase in the frequency and severity of acute weather
events may impact raw material sourcing, disrupt operations
and damage facilities. Facility disruption may result from anincreased risk of tropical windstorms and floods in Asia as wellas increased risk of droughts and heatwaves in Asia, Europe
and the Americas.
The impact of physical risks will become more significant in themedium and longer term, particularly in the >4°C and 2°C to
3°C scenarios. The impact of chronic physical risks, such asincreasing global temperatures, will be particularly impactful
over this time period.

Key assumptions• Scenario analysis is based on our current asset base andvalue chain. Planned changes to our asset base and sourcing
locations have not been taken into consideration inquantifying the five-year earnings at risk
• We have considered the extent to which financial impacts
may be passed on to consumers. This has been assessed inline with expectations of market capacity for price increases
and impact on net cash

See also: Planet, pages 41 to 47.

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Policy risk
Global emissions environment
Average global temperature rise compared topre‑industrial levels by 2100
Impact> 4°C

2°C – 3°C

1.5°C

Low*

Low

Low

Timeframe for most significant impact: short to medium term

How we modelled the risk

Our strategic response

We quantified how the implementation of carbon pricing may
result in increased costs associated with production,
distribution and raw materials.

• In FY 2022/23, we published our Burberry Beyond Climate
Positive by 2040 report, which detailed our baseline GHG
emissions footprint and our commitment to its reduction• We have reduced our absolute scope 1 and 2 GHG emissions
by 93% from our FY 2016/17 base year and we will continue
to identify the energy efficiency opportunities required toreach our 95% reduction target by FY 2026/27. The financial
investment required within our internal manufacturing sites
to meet this target is included in our financial plans• Across our extended supply chain, we aim for a 46%
reduction in scope 3 GHG emissions by FY 2029/30. In FY
2023/24, our overall scope 3 emissions decreased by 45.9%^
from our FY 2018/19 base year, against which we are measured
for our validated science-based target. Our scope 3 emissions
remained relatively flat compared to FY 2022/23 with a 0.4%
reduction overall• The remuneration of our Executive Directors is partly linked toour progress in building a more sustainable future, including
progress towards our Group climate goals• Our £300 million Revolving Credit Facility (RCF) is linked toour scope 3 GHG emissions reduction target• The quantifiable financial investments associated with theseactions are included in our financial plans. We will continue
to embed our net zero transition plan and monitor this through
KPIs applied across the business. We continue to monitor
regulatory and market developments in carbon pricing
to inform our strategy and financial plans

Carbon prices and projected changes in these have been
considered at a country level.

Potential areas of impact
An increase in costs of production, distribution and raw
materials in the short to medium term, with a higher carbon
price required to achieve a lower temperature scenario.
* Under a >4°C scenario there is potential for a minimal positive impact due toreversal of current carbon pricing policies.

Key assumptions• Scenario analysis and quantification of the five-year earnings
at risk does not take into consideration our actions to be
Net Zero by 2040 and therefore assumes a growth in GHG
emissions aligned to an average growth rate used in our
product forecast• GHG emissions are based on our assured FY 2022/23 footprint• We have considered the extent to which financial impacts
incurred may be passed on to consumers. This has beenassessed in line with expectations of market capacity forprice increases and impact on net cash. Global carbon prices
used in the modelling are shadow prices, which are a measureof overall policy intensity and expected to increase on astraight-line basis over the period. The annual carbon pricehas been interpolated based on the final carbon price reachedat the end of the scenario modelling period. The global
average carbon prices reached by the end of our scenario
modelling period are:See also: Planet, pages 41 to 47.

• 1.5°C = USD 75 per tonne• 2°C – 3°C = USD 5 to USD 45 per tonne• > 4°C = USD 0 per tonne^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

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Market risk
Global emissions environment
Average global temperature rise compared topre‑industrial levels by 2100
Impact> 4°C

2°C – 3°C

1.5°C

Low

MediumHigh

Timeframe for most significant impact: short to medium term

How we modelled the risk

Our strategic response

We quantified how shifts in consumer preferences towards
more sustainable and less carbon intensive goods may impact
demand for our products.

• We are committed to sourcing certified and responsibly
sourced materials and aim to ensure that 100% of key raw
materials in our products will be certified or responsibly
sourced by FY 2029/30 (as defined in our Sustainable Raw
Materials Portfolio)• We are a member of the Textile Exchange, which is a
not-for-profit organisation working to increase the global
market for sustainable fibres and to create certifiable
sustainability standards for key raw materials• In March 2024, we released the Burberry Classics collection,a core commercial range where all ready-to-wear clothing
in the Summer 2024 collection has a main material which is
responsibly sourced (at least 70% organic or 50% recycledcontent). Within beauty we also launched our first refillable
fragrance, Burberry Goddess, and have expanded ourrefillable offering with selected new Burberry products andfragrances• We continue to invest in the exploration of materials
innovation, which will play a key role in our wider
decarbonisation efforts• We continue to evolve our aftercare offer and trial new
circular business models. See Opportunities table on pages
75 to 76
• In FY 2023/24, we introduced new fabric- and paper-based
packaging, which allowed us to achieve our target of eliminating
plastic from our consumer packaging. All hardware and zips
have also been removed to facilitate recyclability. See moreon packaging on page 40• In FY 2023/24, we delivered sustainability training toover 300 colleagues involved in the key stages of productdevelopment and raw material sourcing processes toaccelerate the uptake of our responsible raw materials
sourcing principles• The quantifiable investments associated with theseproduct‑related initiatives are included in our financial plans

Consumer preference shifts have been considered ata country level.

Potential areas of impact
A shift away from products constructed using less sustainable
raw materials, including animal-based products, towards
organic, regenerative or recycled fabrics. This shift is expected
to happen in the short to medium term, and more quickly ingeographical regions where public attention on sustainable
materials used to produce clothing is greater, such as Europe
and North America. The shift will be more apparent in a lower
temperature scenario, which assumes that a higher proportionof consumers will adopt more sustainable choices.

Key assumptions• Consumer perception of Burberry products is assumed to belinked to the carbon footprint of sourcing raw materials,
production and distribution• Scenario analysis is based on Burberry’s future Productstrategy and revenues, aligned with its updated strategic
vision and projected raw material usage• We have considered how shifts in consumer preferences may
impact operating margin and net cash. This has been assessedin line with our current cost structure

See also: Product, pages 37 to 40.

72Burberry Annual Report 2023/24

Reputation risk
Global emissions environment
Average global temperature rise compared topre‑industrial levels by 2100
Impact> 4°C

2°C – 3°C

1.5°C

Low

Low

Low

Timeframe for most significant impact: short to medium term

How we modelled the risk

Our strategic response

We quantified how climate activism due to negative perceptionof our climate impact and strategy may result in reputational
damage, disruption to spending patterns and loss of revenue.

• Sustainability is an increasingly important factor in
consumers’ purchasing decisions. Consumers, particularly
younger generations, expect brands to have a clear andcomprehensive agenda with respect to sustainability andsocial responsibility, including carbon reduction efforts;
sustainable raw material sourcing and traceability; fair labour
practices; diversity and inclusion; and protecting nature• We are working to reduce our environmental footprint andmeaningfully support our global communities while seeking
to transform our industry• Our Sustainability Principles provide our Marketing teams,
Production teams and external partners with a mandatory
and comprehensive guide to reducing the overall impactof emissions from marketing activity, events, visualmerchandising and gifting• In 2023, Burberry was ranked by CDP in the Leadership band,receiving an A- for its climate change submission• We continue to play a role in shaping policy and regulation
within our industry and are working collaboratively withpartners, suppliers and other organisations to achieve ourambition. This includes the United Nations Global Compact,
The Fashion Pact, The UN Fashion Charter, RE100, Race toZero and Accounting for Sustainability which is part of theKing Charles III Charitable Fund

Society’s opinion with respect to the threat of climate change
has been considered at a country level.

Potential areas of impact
Society may engage in climate activism in the short to medium
term, with companies perceived as less sustainable being
targeted, decreasing revenue and reducing market share.
Despite minimal shifts in consumer preferences in the short term
under a >4°C scenario, a section of society may engage in generalactivism against organisations due to their inaction in relation toclimate change, resulting in disruption and lost revenue.

Key assumptions• Scenario analysis is based on Burberry’s future Productstrategy, aligned with its updated strategic vision• We have considered the extent to which financial impacts
incurred may be passed on to consumers. This has beenassessed in line with expectations of market capacity forprice increases and impact on net cash
• Scenario analysis uses a performance percentile tobenchmark Burberry against its wider industry in termsof GHG emissions

See also: Planet, pages 41 to 47, and Product,pages 37 to 40.

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Liability risk
Global emissions environment
Average global temperature rise compared topre‑industrial levels by 2100
Impact> 4°C

2°C – 3°C

1.5°C

Low

Low

Low

Timeframe for most significant impact: short to medium term

How we modelled the risk

Our strategic response

We quantified how perceptions regarding involvement inclimate-change-driving activities, sustainability claims, andfailure to transition the business toward a low-carbon future
could lead to increased operating expenses through litigation.

• We monitor and work to continuously improve processes
to gain assurance that our licensees, suppliers, franchisees,
distributors and agents comply with Burberry’s contractual
terms and conditions, its ethical and business policies, andrelevant legislation• Specialist teams at corporate and regional level, supportedby third-party specialists where required, are responsible for
ensuring the Group’s compliance with applicable laws, ethicaland business policies and regulations, and that employees
are aware of the policies, laws and regulations relevantto their roles• Our Global Environmental Policy is part of our Responsible
Business Principles and sets out our commitment toenvironmental responsibility and standards for compliance.
These principles are mandatory and apply to all of ouroperations and supply chain partners’ activities, insofar
as they relate to Burberry

Potential areas of impact
Potential operating expenses may arise from fines, settlements
and legal costs in the short to medium term.

Key assumptions• Historical precedents and recent climate-related litigation
trends have been utilised in modelling the potential impactsof climate change litigation on Burberry

See also: Risk and Viability Report, pages 83 to 90.

74Burberry Annual Report 2023/24

Opportunities
In addition to these climate-related risks, there are also opportunities for mitigating risks and fostering growth for the businessduring its transition towards a lower-carbon economy.
Burberry integrates its approach to identifying climate-related opportunities within its broader strategy aimed at effecting positivechange with sustainability as a focal point. Supported by the company’s overarching net zero ambition, the Sustainability Committee
plays a pivotal role in identifying, prioritising, and realising climate-related opportunities. The committee receives pertinent
opportunities from internal teams working on the Planet and Product pillars, which are then evaluated for feasibility and potential
impact. Examples of such climate-related opportunities are summarised below.

TCFD
opportunity
area

Opportunity
description

Actions taken to realise opportunities

Timehorizonof impact

Resource
efficiency

Use of more efficient
production anddistribution processes

We are currently working to replace gas boilers at our UK internal
manufacturing sites with more efficient electric boilers.

Short/mediumterm

We work closely with other brands as part of the Corporate Water
Leaders group, a global network of working groups dedicated tosolving industrial water challenges and furthering water stewardship.

Short/medium
term

Move to more efficientbuildings

Improved building efficiency through obtaining LEED Goldcertification in 32 additional stores and BREEAM Excellent
certification at our flagship Bond Street store, making a total of 105
certified stores since FY 2018/19.

Short/medium
term

Use of lower-emission
sources of energy

100% of the electricity we consume is matched by an equivalentamount of renewable generation, sourced from renewable tariffs
or Energy Attribute Certificates, or generated through on-site
renewables. Solar panels have been installed at our headquarters
in London and our distribution sites in Italy and the USA.
Furthermore, we have begun improvement works at our distribution
site in Blyth, where we are also installing solar panels.

Short term

We have identified several opportunities to increase energy
efficiency in our own operations, including maximising lighting
efficiencies through LED upgrades, improving the managementof heating and cooling systems using temperature boundaries, andreplacing single-glazed windows in stores to reduce heat loss.

Short term

We released the Burberry Classics collection, a core commercial
range where all ready-to-wear clothing in our Summer 2024 collection
has a main material that is responsibly sourced (at least 70% organicor 50% recycled content).

Short/medium
term

We offer Trench, Cashmere and Leather Refresh services globallyand continue to expand these initiatives. We expanded our refreshand repair services to include cashmere jumpers, reproofing for
select rainwear garments using organic, biodegradable solutions,and shoe repairs during FY 2023/24.

Short/medium
term

Development of new
products or services
through research anddevelopment andinnovation

Our Senior Material Innovation Manager leads on identifying anddeveloping innovative materials that will help decarbonise ourbusiness, with several materials in the pipeline, such as hydroponic
cotton, which is grown through soil-less farming in a verticalgreenhouse, helping to conserve water and minimise land use.

Short/medium
termParticipation in
renewable energy
programmes andadoption of energy
efficiency measures

As a member of The Fashion Pact, we are collaborating with peers
to support our European suppliers with the transformation ofenergy use at their facilities through the European Accelerator
Programme. The programme focuses on improving data collection,
guidance on best practice and financing decarbonisation.

Short/medium
term

Resource substitutes/
diversification

We continue to invest in a traceability solution, which will enable us
to better manage risks and opportunities associated with our raw
material supply chains.

Short/medium
term

EnergysourceProducts
and services

Resilience

Development and/or
expansion of lowemission goods andservices75

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TCFD
opportunity
area

Opportunity
description

Actions taken to realise opportunities

Timehorizonof impact

Markets

Access to new markets

We continued our rental partnership with My Wardrobe HQ in
the UK, through which members can rent Burberry outerwear,
ready‑to‑wear, bags and accessories. We also continued our trial
with Cocoon, a luxury bag subscription service in the UK.

Short term

In the UK and USA, we partnered with global luxury resale platform,
Vestiaire Collective, in FY 2023/24, to make pre-loved Burberry
pieces available to purchase.

Short term

Launched in FY 2023/34, our first product upcycle service allows
UK customers to have visible signs of wear and tear on theirBurberry cashmere scarves repaired with custom embroidery,applique and personalisation.

Short term

See more on our circularity initiatives in the Product section,
pages 38 to 39.

Short/mediumterm

We recognise the potential impact of climate change, which remains a principal risk for the business. While there are challenges
ahead, the business is well positioned to both address these and capitalise on the identified opportunities, which will arise in thetransition towards a lower-carbon economy. Our net zero ambition will be key in ensuring Burberry’s resilience to the potential
impacts of climate change, supported by our wider Burberry Beyond strategy (see Responsibility section pages 35 to 62) andunderpinned by ambitious targets, which are detailed in the Metrics and targets section on pages 77 to 78.

Risk management
Climate change has been identified as a principal risk to
Burberry, see page 86 and has the potential to impact ourbusiness in the short, medium and long term, as detailed in theStrategy section on pages 68 to 76.
The overarching approach to identifying climate-related risks is
the same as for all principal risks and is described on pages 83
to 90. Additionally, for climate-related risks, we have undertaken
qualitative scenario analysis since FY 2018/19 and a quantitative
scenario analysis since FY 2019/20 to support our identification
and understanding of such risks.
For each principal risk we have a risk management framework
detailing the controls in place and those responsible formanaging the overall risk and the relevant mitigating controls.
We monitor risks throughout the year to identify changes inprincipal risk profiles. Management of climate-related risks is
distributed throughout the organisation, depending on where
the risk resides. For example, climate-related risks in relation to
raw materials in the supply chain are managed by our Sourcing
team responsible for buying commodities.
The cross-functional TCFD working group previously defined
the risk management methodology and approach for identifying
and assessing climate-related risks and mitigating controls.
Using scenario analysis, the working group quantified climaterelated risks to Burberry and evaluated their size and scope.
This supported the working group in prioritising risks andassessing the resilience of our business strategy to potential
climate-change impacts.

76

When sustainability and climate-related risks are assessed,
existing mitigating activities and controls are highlighted and,
where relevant and appropriate, additional activities andcontrols are implemented if risks fall outside risk tolerance.
Progress against these mitigating activities is assessed by the
Risk Committee and is subject to independent review by GroupInternal Audit as part of the annual audit plan. During the year,
the Audit Committee reviewed the progress made against thefour TCFD pillars, the scenario analysis undertaken and the
proposed disclosure.
Climate-related risks and opportunities are continuallymonitored as part of our Enterprise Risk Management
framework. This allows us to evaluate the relative significanceof our risks based on their likelihood and impact, and to prioritise
accordingly. The business has also developed a risk platform,
which enables us to track our business objectives, including
those which create or protect financial, social, environmental
and reputational value.
We also monitor the environment for new and emerging risks
and to keep abreast of evolving regulatory requirements.
We will continue to develop our scenario analysis to improve
our understanding of these risks and opportunities, aligning
our strategy and actions accordingly.

Metrics and targets
We have several metrics and targets in place to monitor andmanage the most significant risks and opportunities arising fromclimate change. These are outlined in the table on pages 77
to 78 and are linked to the risks modelled as part of the scenario
analysis and the opportunities identified by the business.

Burberry Annual Report 2023/24

Metrics

Targets

Physical risks
Water
We monitor supply chain water management practices,
water intensity in absolute and relative terms, and waterrisk based on the geographical area.
Our water risk assessment, which incorporates the WWF
Water Risk Filter, considers the basin physical risk (water
scarcity, water quality and flooding) of our partners’ sites,
the water intensity and the water management using
several KPIs. Our Water Conservation Framework rates
the level of water resilience of our partners’ sites as
hotspot, red, amber, green and excellent, and identifies
hotspots, which are defined as sites in areas of highwater stress with inadequate water management withrespect to their water intensity.

• Maintain regular assessment coverage of at least 80% of ourvendors and raw material suppliers• We aim to have zero hotspots by 2030 and to monitor thepercentage of products delivered by supply chain partners
rated as hotspot

In the case of hotspots, Burberry supports the supply
chain partners in developing action plans to improve theirlevel of water resilience, and monitors progress quarterly.

PolicyGHG emissions
GHG emissions across scopes 1, 2 and 3.

GHG emissions reductions:• Burberry is committed to reducing absolute scope 1 and 2 GHG
emissions by 95% by FY 2026/27 from a FY 2016/17 base year
and to maintaining this year on year from FY 2026/27 to
FY 2039/40. Scope 1 and 2 progress for FY 2023/24 is 93%• Across our extended supply chain, we aim for a 46% reductionin scope 3 GHG emissions by FY 2029/30 and a 90% reductionin scope 3 GHG emissions by FY 2039/40 (from FY 2018/19).
In FY 2023/24, our overall scope 3 emissions decreased by 45.9%^
See our Responsibility indicator results on pages 30 to 33 and our
Global GHG emissions table on page 43.
Renewable electricity:• We targeted the use of 100% renewable electricity across ouroperational footprint by end of FY 2021/22. This target has beenachieved and maintained
See our full results on page 42.
These metrics and targets also support the Resource Efficiency
and Energy Source opportunity areas.

Sustainability BondOur Sustainability Bond proceeds are allocatedacross three categories outlined in the Framework as
Eligibility Criteria:• Green buildings• Environmentally sustainable management of living
natural resources and land use• Pollution prevention and control (including waste
prevention, waste reduction and waste recycling)• The proceeds of the £300 million Sustainability Bond havebeen fully allocated across the three categories outlined in the
Framework. In accordance with the Framework, these eligible
projects and spend were completed within the three-year period
preceding and the financial years since the issuance of the
Sustainability Bond in September 2020
See the Use of Proceeds Report on page 64 for further details.

This metric also supports the Resource Efficiency
opportunity area.
^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

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Metrics

Targets

PolicyRemuneration• The remuneration of our Executive Directors is partly
linked to our progress in building a more sustainable
future. In addition, Burberry introduced sustainability
metrics to the annual corporate bonus plan for thewider workforce with effect from FY 2023/24.
More details of this are set out in the Directors’
Remuneration Report on pages 125 to 142• In FY 2023/24, 25% of the annual bonus for Executive Directors
was linked to performance against strategic objectives linked
to our strategy and brand as well as our environmental andsocial targets• In FY 2023/24, a proportion of our annual corporate bonus planfor the wider workforce was linked to performance againstsustainability metrics, including our GHG emissions and certified
or responsibly sourced material targets

MarketProduct and sustainable raw materials
We measure the following metrics:• Percentage of traceable and certified materials• Total number of products refreshed using ouraftercare services. See Product on pages 38 to 39
for further details on our ambitions around circularbusiness models• Percentage share of low-carbon materials procured
for use in Burberry products• Percentage of revenue from low-carbon products.
This is based on the main material composition of our
key product categories. Details are available in our
CDP Climate disclosure• 100% of key raw materials in our products to be certified or
responsibly sourced by FY 2029/30 (as defined in our
Sustainable Raw Materials Portfolio). Our six key raw materials;
cotton, synthetics, viscose, wool, leather and feather and down
represent over 90% of the total volume (in weight) of materials
within our products
These metrics and targets also support the Product and Services
opportunity area.

Reputation
Consumer sentiment• Burberry aims to monitor consumer perception metrics
on the extent to which Burberry is considered asocially responsible brand• We remain committed to actively participating inbenchmarks such as CDP and the Workforce Disclosure
Initiative (WDI), and we continue to engage with indiceslike the FTSE4Good Index, MSCI, and Sustainalytics• N/A

Liability
Due diligence
Burberry monitors activity across its supply chain in linewith its Responsible Business Principles, which include
its Global Environmental Policy. Key metrics include:• Number of supply chain audits and engagement
visits conducted• Supply chain chemical management assessment results• Effluent testing results (available on Burberryplc.com)

78

• N/A

Burberry Annual Report 2023/24

Setting and monitoring targets is key to driving progress
towards our Burberry Beyond strategy, and we have an extensive
range of KPIs focusing on our four pillars of Product, Planet,
People and Communities. These KPIs are integral to ensuring
we both build a better world for the future generation andsafeguard the long-term success of our business. See our
Responsibility Data Appendix on Burberryplc.com, which includes
further details on how we monitor performance in this space
and the latest KPI data.
We have also considered the cross-industry climate-related
metrics and targets recommended by the TCFD, and willcontinue to develop metrics and targets in relation to transition
risks, physical risks and opportunities where they are deemed
to facilitate comparability.
Our climate-related metrics and targets cover renewable energy
procurement and GHG emissions reductions across scopes
1, 2 and 3. Burberry has appointed PricewaterhouseCoopers LLP(PwC) to provide independent limited assurance over selected
Responsibility indicators as part of our Burberry Beyond
strategy, as well as key metrics reported in our Global GHG
emissions table on page 43. Metrics assured by PwC are
denoted with a ^ throughout this Annual Report.

Since 2010, Burberry has been reporting to CDP, a not-for-profit
charity, which, with the richest and most comprehensive dataset
on corporate action on climate, is considered as a gold standard
for environmental reporting. In 2023, Burberry was ranked
by CDP in the Leadership band, receiving an A- for its climatechange submission.
We recognise that meeting our climate-related targets
is dependent on collective action. Foremost are countries
implementing their Paris Agreement-aligned commitments andincreasing them to more ambitious levels. Improving market
conditions for clean energy supply, such as the rate of installationof renewable electricity in many countries, reducing costs andthe availability of purchase power agreements will help shift therate of decarbonisation at scale. We believe we have a role toplay in helping to shape the required policies and regulations.
We collaborate with partners, suppliers and other organisations
to achieve our ambition. These include the United Nations Global
Compact, The Fashion Pact, The UN Fashion Charter, RE100,
Race to Zero and Accounting for Sustainability which is partof the King Charles III Charitable Fund.

Reporting
We align our reporting on climate-related metrics to recognised
standards, including the GHG Protocol, the UK’s Streamlined
Energy and Carbon Reporting and the TCFD.
In line with the Large and Medium sized Companies and Groups(Accounts and Reports) Regulations 2008 as amended by theCompanies Act 2006 (Strategic Report and Directors’ Report)
Regulations 2013, our GHG emissions are set out on page 43.
In recognition of the importance of the TCFD and Sustainability
Accounting Standards Board (SASB) being key ESG reporting
frameworks for our stakeholders, we continue to produce a
SASB-aligned disclosures report, which is available within our
Responsibility Data Appendix on Burberryplc.com.
As part of the development of our transition plan, we havebaselined the Company’s current position and set our net zeroambition (which can be found within our Planet section on pages
41 to 47). We have continued to monitor the developments of the
UK Government’s Transition Plan Taskforce to ensure we alignwith its requirements. A key focus for us in FY 2024/25 is thealignment of our carbon disclosures with the UK’s Transition
Plan Taskforce framework, which includes details of how weare aligning our business model, operations and products witha net zero economy. Alongside this, we are developing climate
literacy training for Burberry colleagues to ensure our people
have the skills and knowledge needed to support the successful
delivery of our transition plan.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited
Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

79

Burberry Annual Report 2023/24

Strategic Report | Stakeholder Engagement

STAKEHOLDER ENGAGEMENT
Burberry is committed to listening to our stakeholders and doing right by them to ensure our long-term success.

Section 172 (1) statement
In accordance with the Companies Act 2006 (the Act), theDirectors provide this statement to describe how they haveengaged with and had regard to the interests of our key
stakeholders when performing their duty to promote thesuccess of the Company, under section 172 of the Act.
The Board is aware of its obligations, both collectively andindividually, to promote the success of the Company for the
benefit of its stakeholders.
Ensuring regular, comprehensive engagement with our
stakeholders across the business helps us to understand theirperspectives and values mindful of the balance between
competing priorities of different stakeholder groups.

This knowledge influences decision-making and planning
both at management and Board level, allowing us to deliver
our strategy, conscious of the potential impact of our actions.
Matters submitted to the Board for approval from various areasof the business are required to identify which stakeholder groups
would be impacted and how, to enable the Board to engage in
informed discussions before reaching key strategic decisions.
The Board’s areas of focus during FY 2023/24 and key
decisions made during the year, including how stakeholder
views were taken into account and the outcome of theengagement, are set out on pages 104 to 105.

PeopleWe want our people to thrive at Burberry and are committed to attracting and retaining the best talent for our business.

Why they matter to us

Our people are creative, highly skilled in their respective fields and have brand knowledge and insights.
As Burberry’s greatest asset, we are committed to their professional and personal development.
Ensuring our workforce is engaged and motivated is an important driver for our business.

What matters to them

• Career development• Operational efficiency

Board engagement

Meaningful two-way communication between the Board and our workforce is crucial.
How the Board has engaged:• The Global Workforce Advisory Forum(see page 103 for more detail)• Colleague surveys• Wellbeing• Fostering a diverse, equitable andinclusive culture• Attending and participating in global town
halls covering a variety of topics• During FY 2023/24, Board members
participated in town halls in Mainland
China, the USA and a Global Town Hall for
the Finance and Business Services teams

Customers
We sell to and connect with our customers through directly operated stores, concessions and wholesale partners,
as well as via Burberry.com.

Why they matter to us

By purchasing our products, our customers ensure Burberry’s viability as a business.
We aim to meet and exceed our customers’ expectations with highly creative productsof exceptional quality. We provide them with exemplary customer service through a seamlessomnichannel experience and invite them to be part of our inclusive Burberry community.

What matters to them

• Product design, craftsmanship, innovationand newness• Customer service and brand experience• Sustainability and circularity

Board engagement

Understanding our customers and what they are looking for is key to the success of our brand.
How the Board has engaged:• Customer insights provided throughpresentations from our CEO and senior
management team• Presentations from regional presidents
and their markets• Regular store visits, including our
refurbished Bond Street store, which wastoured as part of strategy meetings in
October 2023, and the Harrods takeover
event in February 2024

80

• Addressing evolving customer habits andchanges in buying patterns in the context
of the macroeconomic climate• Environmental and social impact• CEO visits to Mainland China, the USA,
Japan, South Korea, Southeast Asia
and Australia• Personal customer experience acrossall of our channels

Burberry Annual Report 2023/24

Shareholders
Through our Group’s strategy, we are creating long-term sustainable value for our shareholders.

Why they matter to us

By investing in Burberry, our shareholders ensure our Company’s ability to trade and plan for the
future. By being open and transparent with our shareholders about our business and its strategy,
they can make informed decisions.

What matters to them

• Total shareholder return (TSR) throughshare price appreciation and dividend
payments• Operation of the Capital Allocation
Framework

Board engagement

The Board benefits from the views of the investment community in its decision-making.
How the Board has engaged:• Review of all shareholder communications,
including trading updates, results, theAnnual Report and Notice of Annual
General Meeting (AGM)• AGM enables shareholders toengage directly• Quality of governance• ESG and, in particular, climate-related
strategies• Profitability and business growth potential• Investor meetings and resultspresentations• Updates provided to the Board on mattersof interest to investors

Communities
Burberry is committed to being a responsible business and supporting our communities.

Why they matter to us

Caring for our communities is one of Burberry’s core values. Through our Burberry Inspire
programme and by supporting The Burberry Foundation (UK registered charity number 1154468),
we are driving positive change in our communities and helping to build a more sustainable futurefor young people.

What matters to them

• Positively impacting the communities living
and working around us

Board engagement

As a global business, the Board recognises the importance of supporting our communities.
How the Board has engaged:• Approval of the policy of donating at least
1% of PBT to charitable causes, including
The Burberry Foundation. (For more
information on the work of The BurberryFoundation see page 58)• Employment within our communities• Increased focus on Environmental andSocial Responsibility initiatives• Receiving updates on how Burberry
is supporting communities throughsustainability initiatives and projects• Supporting employee volunteering andfundraising programmes across the Group

1. Figure excludes colleague headcount where there are data restrictions of the Spark volunteering platform.

81

Burberry Annual Report 2023/24

Strategic Report | Stakeholder Engagement

Partners
We collaborate with a wide range of partners, including suppliers, companies, NGOs, civil society groups
and retail third parties.

Why they matter to us

Working collaboratively with our partners allows us to share knowledge and expertise while
exploring opportunities for innovation. We nurture close relationships with members of our
supply chain to drive social and environmental improvements for our communities.

What matters to them

• Increased focus on Environmental
and Social Responsibility initiatives

Board engagement

The Board recognises the importance of engaging with our partners to support our strategic goals.
How the Board has engaged:• The Board receives regular updates onsustainability-related matters in our supply
chain, including those related to climatechange and how we are working withpartners and suppliers to achieve oursustainability targets• The Board reviewed and approved theTransparency in Supply Chain and Modern
Slavery Statement• Driving collaboration and contributing
to the UN SDGs

• The Audit Committee receives updateson ethical audits across our supply chain• Receiving updates on collaborations andknowledge sharing with partners, including
industry experts and peers. For detailsof the organisations we are working with,see page 62

Governments
Governments have wide-ranging influence on matters which impact Burberry, including the long-term retail environment,
employment laws, trade, environmental priorities, tax and other business matters.

Why they matter to us

Engaging with governments in the countries and territories where we operate facilitates Burberry’s
ability to perform as a business. We endeavour to understand their concerns and raise our own
so we can seek solutions to shared environmental, social, economic and governance issues.

What matters to them

• Industry/product policies such as taxes,
restrictions, trade, competition andregulations

Board engagement

As a global organisation, the Board is mindful of the impact local governments can have on our business.
How the Board has engaged:• The Board is briefed on engagementswith governments throughout the year.
In FY 2023/24 this included developments
in domestic and international policies andregulations, as well as tax matters suchas trade compliance, cross-border tax
agreements, corporate tax, and indirect
taxes such as VAT

82• Increased focus on Environmental
and Social Responsibility initiatives• Employment and workplace policies• Domestic and local investment• The Board is also briefed on key matters
including workplace regulations and the
evolving environmental and climate change
regulatory landscape to ensure readinessfor implementation

Burberry Annual Report 2023/24

Strategic Report | Risk and Viability Report

RISK AND VIABILITY REPORT
Risk management at Burberry supports value creation and protects existing value.

Our approach to risk

Risk appetite

Burberry’s strategic objectives are at the centre of risk
management activities. Group Risk comprises risk management,
business resilience and insurance. The team assesses, prioritises
and manages risks to support the effectiveness of business
operations. Reporting of risk management activities is provided
throughout the year to the Risk Committee, Audit Committee
and the Board.

The Group’s risk appetite is defined by the Board and outlines
the nature and extent of risk the Group is willing to take tosupport responsible and sustainable growth. The Board
is ultimately responsible for challenging management’s
development and implementation of effective systems of risk
identification, assessment and mitigation to within risk appetite.
The Board has delegated responsibility for reviewing theeffectiveness of the Group’s internal controls and risk
management arrangements to the Audit Committee. Ongoing
review of these controls is provided through the Risk
Committee, Sustainability Committee, Data Privacy Committee,
Ethics Committee, Group Treasury Committee and supportinginternal governance processes. Internal Audit provide
independent assurance to management and the Audit
Committee on the effectiveness of management actions.

Group Risk supports the business to integrate risk into
decision-making, enabling the delivery of sustainable financial,environmental, social and reputational value. By collaboratingclosely with teams across all areas of the business, Group Risk
enhances risk identification and analysis to establish therequired mitigation profile to meet our strategic objectives andmanage risk to within Burberry’s risk appetite.
Our business resilience approach focuses on critical risks andcontrols to business operations, and supports the managementof continuity plans in the event of the risk occurring or acontrol failure. We hold test risk simulations with our business
functions and our Group Incident Management team, a seniormulti-disciplinary team established to manage global incidents,
which is chaired by our CEO.
Our insurance strategy is informed by our risk appetite, risk
tolerance and risk profile. Our Insurance team works closelywith risk management and business resilience to arrange
sufficient insurance cover for insurable risks.

Risk management approach

The Group’s risk appetite was reviewed by the Risk Committee
and approved by the Board in March 2024.

Risk appetite statement
We seek to protect the long-term value and reputation of ourbrand, maximising commercial benefits to support responsible
and sustainable growth within a defined risk tolerance.
We accept some risk in pursuit of growth through brandelevation commensurate with our position in luxury fashion.
We approve capital investment in strategic projects andaccept a moderate level of risk in our dynamic pursuitof profitable growth through our creativity and innovation,balancing a reasonable return on capital with a proportionate
level of commercial risk within the approved Capital
Allocation Framework.

Risks that could impact
Burberry’s ambitions and objectives

Complying with applicable laws and regulations and doing
the right thing are an essential part of our culture and underpin
our strategic ambition. In evaluating risks and opportunities,
we prioritise the interests and safety of our customers, people,
communities and the environment.

Strategic milestones

Principal risks

External risks

Burberry’s strategic pillars
and milestones

Internal risks
Identify internal risks
to key milestones

Internal controls
Identify investments required
to manage risk exposure
to within risk tolerance

Internal audit
Provide assurance overthe previous steps

The Board considers principal risks to be the most significant
risks faced by the Group, including those most material to our
performance and those which could threaten our businessmodel or the future long-term solvency or liquidity of Burberry.
The Group considers short term to be up to two years, medium
term to be two to five years and long term more than five years.
The principal risks do not comprise all the risks and mitigating
actions associated with our business and are not set out inpriority order in the Annual Report. We conduct horizon scanning
to identify additional risks not known to management, or currently
deemed to be less material, which may also have an adverse
effect on our business.
Our risk framework is structured using the following categories
of risk: External, Strategic, Operational and Compliance.
Each principal risk is linked to one of these categories andmay impact one or more of our strategic priorities.

83Burberry Annual Report 2023/24

Strategic Report | Risk and Viability Report

Principal risk assessment

Review of principal risks

We identify and manage risks which could prevent us creating
and protecting financial, environmental, reputational and social
value. At least twice per year, Group Risk conducts a full reviewof the Group’s principal risks for endorsement by the Risk
Committee and approval by the Audit Committee. The review
includes an assessment of the comprehensiveness of theGroup’s principal risks, descriptions, movement, outlook,tolerance levels, associated risks and the effectivenessof mitigating actions. Risks are reviewed in the context of theexternal and internal operating environment. Where any risks
are outside tolerance, we identify additional plans to mitigate
the risk exposure within a reasonable time frame and monitor
the implementation of these plans.

The Risk Committee endorsed the half-year and year-end risk
assessment in October 2023 and April 2024, and they wereapproved by the Audit Committee in November 2023 andMay 2024, respectively.

Business risks
Our approach aligns the risks reported by our specialist
business functions with those identified in our principal risk
analysis. By aligning our risks, we are better able to support thebusiness by investing in appropriate Group and local controls.
In addition, we have focused areas of risk capability, for example
in our Legal, Brand Protection, IT, Finance and Corporate
Responsibility teams.

Strategic risk
Using our principal risk framework, Group Risk supports theGroup functions to conduct an annual risk assessment on the
key risks which may impede our ability to achieve our strategic
goals. In addition, scenario analysis and risk appetite mechanisms
are used to distinguish the key mitigating actions required to
manage them. Risks and mitigations are assigned owners andmonitored throughout the year.
The Board reviewed the strategic risk assessment in October 2023.

Emerging risks
Emerging risks which have the potential to affect our businesson a medium to longer term view, continue to be assessedalongside our principal risks as part of our risk management
process. We undertake horizon scanning through insightsfrom top-down and bottom-up risk workshops with internal
stakeholders, attending industry forums, and seeking specialist
professional consultation where required.

84

Within our half-year assessment, the Group split theMacroeconomic and Geopolitical uncertainty principal risk,
incorporating Macroeconomic risk within Global consumer
demand and creating the separate classification and monitoringof Geopolitical Uncertainty. No other changes to the Group’s
principal risks were made during the year.
At the year-end assessment of the Group’s principal risks,
Geopolitical Uncertainty was assessed to have increased
in comparison with the prior financial year. The increasein geopolitical activity has increased uncertainty in termsof future trading opportunities with certain countries, however,
we continue to closely monitor the global developments toimplement appropriate responses.

Strategic pillars
1Harness the power of our brand2

Bring all product categories to full potential

3

Strengthen distribution

4

Operations

Risk movement
Risk has remained stable since the prior financial year
Risk has increased since the prior financial year
Risk has decreased since the prior financial year

Risk toleranceLow

We adopt a focused risk-based approach, seeking
to allocate resources to mitigate related key risks
wherever possible

Moderate

We adopt a risk-based approach that allocates
resources in line with strategic priorities

High

We have a greater willingness to tolerate risk
and prioritise resources in pursuit of otherstrategic objectives

Burberry Annual Report 2023/24

Principal risk summary
Principal risk

Movement

Tolerance

Link to strategy

1. Foreign exchangeHigh

2. Geopolitical uncertainty

Moderate

3. Climate change

Low

1

4. Global consumer demand

Moderate

5. Image and reputation

Low

6. Business interruption

Low

7. Cyberattack/loss of dataLow

8. Supply chain

Low

9. IT operations

Moderate

10. People

Low

11. Intellectual property (IP) and brand protection

Low

1

12. Regulatory risk and ethical/environmental standards

Low

1

Category
External

4
3

4

2

3

4

1

2

3

4

1

2

3

4

3

4

3

4

3

4

3

4

1

1

2

2

Strategic

Operational

4Compliance

4
2

3

4

External risks
1. Foreign exchange

2. Geopolitical uncertainty

Volatility in foreign exchange rates could have a significant
impact on the Group’s reported results. Burberry is exposed to
uncertainty through foreign exchange movements. Major eventsin the macroeconomic and geopolitical environment could impact
foreign exchange rates, which in turn would have ramifications
for the Group’s reported results.

The Group operates in a wide range of markets and is exposed
to changing political developments and relationships between
governments which may impact consumer demand and affectour people, reputation, supply chain, trade and ability to operate
within markets.

Risk movement

Risk tolerance

Link to strategy

High

4

Examples of risks• Changes in exchange rates between sterling and the regions
of Burberry’s operations may impact Burberry’s reported
revenues, margins, profits and cash flows

Mitigating actions• Burberry hedges some external purchases of goods andsome intra-group balances using financial instruments• Burberry monitors the overall impact of unhedged exchange
movements and provides guidance to shareholders if
exchange rates move on a quarterly basis• Treasury and Group Finance teams, overseen by the Treasury
Committee, monitor Burberry’s foreign currency exposure.
Further details on Burberry’s approach to managing foreignexchange risk are given in notes 18 and 27 to the Financial
Statements, pages 190 and 197

Risk movement

Risk tolerance

Link to strategy

Moderate

3

4

Examples of risks• Civil unrest or uprising may impact the wellbeing ofcustomers, employees and third-party partners and disrupt
normal operations within the region or market affected• Political instability in the markets in which we operate could
lead to the loss of a key market or changes in customer
sentiment towards Burberry• Changes in governmental trade policy or internationalcommerce disputes (via increased customs/excise tariffs,
quotas) may restrict our ability or increase cost to moveproduct between countries• Conflict between or within nations could result in sanctions,
restricting or preventing our ability to source, operate andtrade in key markets• Instability in the geopolitical landscape could disrupt global
supply chains which may impact delivery times, as well as
impact the cost and/or availability of raw materials, energy
and products

85Burberry Annual Report 2023/24

Strategic Report | Principal Risks

2. Geopolitical uncertainty continued

Transitional climate risks:

Mitigating actions• Our strategy leverages its global reach across multiple
customer segments and regions to mitigate relianceon a particular customer group or nationality• We engage external partners to support our specialist teams
with horizon scanning and monitoring of emerging andcurrent geopolitical developments relevant to our operations• In the event of a geopolitical incident, our IncidentManagement Framework would be invoked to assess theseverity of the incident and take appropriate remedial action• Updates on geopolitical developments, scenario analysis
and deep dives are reported to the Risk Committee,
Audit Committee and Board as appropriate• Assessment of geopolitical risk is included within approval
processes for new growth opportunities, including
expanding our store network and prospective franchise
and wholesale partners• Our supply chain strategy involves assessment andmanagement of geopolitical risk exposures, with a definedrisk framework for the selection and onboarding of new
vendors and suppliers

Strategic risks
We recognise the importance of addressing long-term
environmental sustainability challenges and the impacts ofclimate change on our business in reputational, operational
compliance and financial terms. Failure to implement appropriate
cross-functional action plans and strategies, such as incorporating
the recommendations of TCFD and our Net Zero by 2040
ambition, could hinder mitigation of long-term climate risks,
increase the risk of regulatory non-compliance, and cause
disruption to our operations, supply chain, reputation andworkforce, impacting Group profits.

Risk tolerance

Link to strategy

Low

1

2

3

4

Examples of risks
Physical climate risks:• Acute physical risks: increased severity of extreme weather
events, from floods to droughts, could cause disruption to
our operations and supply chain; impact our business model;
and affect the sourcing of raw materials, as well as the
distribution of our products. Acute physical risks are alreadyoccurring and are expected to happen more often and withgreater severity• Chronic physical risks: longer-term shifts in climate patterns
and loss of biodiversity caused by changes in precipitation
patterns, rising mean temperatures and rising sea levels
could cause social, economic and operational challenges

86

Mitigating actions• Our response to managing physical, reputational, market,
policy and liability climate-related risks is detailed within our
TCFD section from page 66

4. Global consumer demand

3. Climate change

Risk movement• Reputation: failure of Burberry to meet expectations aroundsustainability could lead to climate activism and threaten
relationships with employees, investors, regulators andinterest groups, which may result in a loss of Group revenues• Market: perception of the sustainability of luxury fashion
products, their materials and associated GHG may have an
impact on consumer behaviours and purchasing decisions.
Failure to meet consumer demand for more sustainableproducts and services could threaten our relationship with
consumers and may result in a loss of Group revenues• Policy: increased environmental standards and policies,
such as national or international carbon pricing mechanisms,
could affect operational and production costs and theflexibility of operations• Liability: litigation against activities which drive climatechange, resulting in potential operating expenses arising fromfines, settlements and legal costs• More detail on each of the examples of climate change risks
are provided within the TCFD section from page 66

Global consumer demand for Burberry’s products is subject
to several factors, including changes in the macroeconomic
environment, which may impact consumer disposable income
for spending in the luxury market and/or affect the cost of our
supply chain operations, and therefore our profitability.
Burberry’s product design, quality, product range, channels,
marketing and customer experience could also impact
consumer demand.

Risk movement

Risk tolerance

Link to strategy

Moderate

1

2

3

4

Examples of risks• Changes in economic growth and/or inflation impacts luxury
industry consumption globally or in a key region, channel,
customer group or product line
• Product, marketing quality, design or our range of offerings
does not meet consumer expectations or respond to local
cultural sensitivities in a key market• Global inventory planning and allocation differs fromconsumer demand

Mitigating actions• Our growth strategy aims to balance regional concentration
exposures with growth opportunities• We consult with industry specialists to discuss emerging risks
and consumer preferences in the luxury industry, market
outlook and opportunities for growth• We have expanded our product offering and services
to widen our target consumer base
• Regional teams provide input to Central Merchandisingand Design teams on international product preferences andcustomer feedback to guide product design and categoryofferings which are balanced with global consistency

Burberry Annual Report 2023/24• Cross-functional collaboration across Burberry’s customerfacing teams enables us to align investment, major focus
areas and messaging across channels and regions• We continually invest in our global refurbishment programme• Our product range plan is informed by current market growthand commercial investment• Our global strategy provides flexibility to reallocate
inventory to another region following regional disruption
or reduced demand

6. Business interruption
Global, regional or country level changes in the geopoliticallandscape, natural catastrophes, health emergencies or changes
in regulations may cause significant disruption to our operations,as could events at a local level such as fire, security threats,
industrial action or quality control failures.

Risk movement

5. Image and reputation
We invest in building trust in our brand and protecting ourimage and reputation globally. Unfavourable incidents, unethicalbehaviour or negative media coverage relating to the Group’s
people, practices, products or third-party suppliers could
damage the Group’s image and reputation, potentially lead to a
slowdown in sales as well as a loss of customers, and negatively
impact the value of our brand.

Risk movement

Operational risks

Risk tolerance

Link to strategy

Low

1

2

3

4

Examples of risks• Regulatory non-compliance and/or unethical behaviour on
the part of individuals or entities associated with the Group,
including failure to comply with the Group’s Code of Conduct
or Responsible Business Principles• Culturally, socio-politically or regionally insensitive productor marketing content• Unfavourable or erroneous media coverage or negative
discussions on social networks about the Group’s products,
content or practice

Mitigating actions• Governance of reputational risks, issues and mitigations
is provided through reporting and oversight to the Ethics,
Sustainability, Risk and Audit Committees• Due diligence processes are followed ahead of engagementswith collaborators, influencers and/or celebrities• We follow approval processes and editorial controls to ensure
all product and content is reviewed and signed off prior toexternal release• We perform risk assessments and document risk registers
ahead of all campaigns, runways and events• We provide support and guidance on sustainability and ethicalpractices throughout the organisation via team partnerships• We provide annual training and monitor adherence to therequirements of our Code of Conduct for our employees
and associated third parties. Our supply chain ethical due
diligence programme includes supplier audits and suppliertraining programmes• We maintain product quality control processes to ensure our
products meet Burberry’s quality requirements and comply
with all applicable regulatory, chemical and safety standards• We maintain our Incident Management Framework,
which includes monitoring of social networks andresponse procedures• Continued development of our global Diversity, Equity
and Inclusion strategy

Risk tolerance

Link to strategy

Low

3

4

Examples of risks• An incident at a key Burberry location, for example: fire,
flooding, extreme weather, social unrest, industrial strikes,
terrorism, which may disrupt or interrupt our operations• Trade restrictions, sanctions or geopolitical conflict may
significantly prevent the flow of goods to and from key
locations or regions• A major incident impacting a key third-party service provider,
supplier or vendor, which in turn causes disruption to Burberry’s
ability to operate normally

Mitigating actions• Management has policies and procedures in place designed
to prevent, mitigate and manage business interruption risks,
for example our Business Resilience Policy and business
continuity plans. We have developed our Minimum Viable
Company (MVC) assessment, which captures our mosttime-critical processes and is the keystone of our business
continuity and resilience strategy• A Group incident management framework is in place toensure that incidents are reported, escalated and managed
effectively at the appropriate level, prioritising the safety andwellbeing of our people, customers, environment and otherstakeholders• We have a comprehensive insurance programme supported
by natural catastrophe modelling and insurance optimisation
studies in place to offset the financial consequences of
insured events, including fire, flood, natural catastrophes
and product liabilities• We have robust security arrangements in place across ourstore network and all Burberry premises, to protect ourpeople, visitors, assets and products

87Burberry Annual Report 2023/24

Strategic Report | Principal Risks

7. Cyberattack/loss of data

8. Supply chain

A cyberattack may result in a system outage, impacting core
operations and/or resulting in a major data loss leading to
reputational damage and/or financial loss.

Inability to source raw materials, or to manufacture, procureand distribute finished products from suppliers on a timely basis
at the required quality, quantity and cost in accordance with
Burberry’s ethical and environmental standards may impact ouroperational, financial and reputational performance.

Risk movement

Risk tolerance

Link to strategy

Low

1

2

3

4

Risk movement

Examples of risks• Cyberattack leading to unauthorised system access, leading
to operational disruption, data breach and/or the potential
theft of funds• Attack on a service provider, supplier or wholesale customer
leading to data loss and/or disruption• A social engineering attack attempting to exploit humanbehaviour to gain access to the Group’s systems, resulting
in compromise of Burberry or customer data
• Ransomware attack causing business disruption and/or
major data loss
• Credential compromise of customer or employee accounts
leading to business disruption and/or major data loss
• Compromise or misconfiguration of externally facing assets
causing business disruption and/or major data loss
• Personal and/or sensitive data loss or disclosure leading
to regulatory fines and/or reputational damage• Non-compliance with related international and/or regional
regulatory requirements, for example, EU General Data
Protection Regulation (GDPR)

Mitigating actions• We implement continuous improvement of 24/7/365 global
security monitoring and analytics capability supported by
security incident response processes• We implement solutions to help detect personal and sensitive
data loss with improved control over user access management• We have second line assurance checks reporting on control
effectiveness to Executive and IT management• Governance is provided through a cross-functional
Cybersecurity Steering Group and separate Data Privacy
Steering Group with Executive membership and sponsorship,with specialist steering groups for emerging data regulations• We have enhanced the robustness and evaluation of
cybersecurity incident response plans via improved system
backups, continuity strategies and simulation exercises• We have a culture of security that encourages and positively
reinforces secure employee behaviours, and is supported
by mandatory security training and awareness activities,
including phishing tests• We maintain business financial controls to support fraud
detection/prevention• We have enhanced our third-party due diligence and risk
reporting capabilities• We have established processes to support embeddingof security requirements and objectives in new projects
and initiatives

88

Risk tolerance

Link to strategy

Low

3

4

Examples of risks• Geopolitical or socio-political tensions could delaytransportation of product between countries, increasetransportation costs and/or impact the availability of theworkforce. Sanctions, countersanctions and trade compliancechallenges may also impact the effectiveness and efficiencyof our supply chain• Failure by Burberry or its partners and suppliers to meet therequirements of the dynamic ESG regulatory landscape could
result in operational restrictions (including prevention of
product delivery to intended destination), financial penalties
and/or brand reputational damage• Loss of, or disruption in, the operations of one of Burberry’s
key suppliers, vendors and/or sub-contractors which supply
high-quality raw materials or support product manufacturing,
could impact the delivery (quality and/or timeliness) of our
product lines• An incident (including, for example, social unrest, extreme
weather or fire) at a Burberry site or at those of our supply
chain partners, could put our people, reputation and thetimely delivery of finished goods at risk
• Fluctuations or disruptions to the availability and cost of ouroperational inputs (including, for example, raw materials,
sustainable fabrics, energy, etc.) could impact end productmargins and/or timely delivery

Mitigating actions• Governance of geopolitical risk and ethical practices in
the context of the supply chain with reporting to the Ethics
Committee, Risk Committee, Audit Committee and Board
as appropriate• We have a defined risk framework for the selection andonboarding of new vendors and suppliers• The Group’s Responsible Business Principles andResponsible Sourcing Policy are included within our Codeof Conduct, which forms part of our contractual agreementswith our suppliers and vendors• We are investing in a comprehensive programme to
implement traceability through the supply chain to support
the Group’s raw material traceability targets and compliancewith emerging ESG regulations. Assurance for the
programme is provided by Internal Audit• We continue to evolve our supply chain organisational design
to develop our manufacturing base and reduce dependence
on key sites, suppliers and vendors• We have business continuity plans and insurance for
Burberry’s major distribution and manufacturing sites• Our product suppliers and vendors are subject to a quality
control programme, which includes regular site inspections
and independent product testing• We perform quality and quantity checks upon receipt
and dispatch of finished goods at our distribution centres
and retail stores

Burberry Annual Report 2023/24

9. IT operations
Failure to adequately provide, support or recover IT systems orservices underpinning critical processes across the Group,
including Retail, Digital, Supply Chain, HR and Finance, could
significantly impact the Group’s ability to operate.

Risk movement

Risk tolerance

Link to strategy

Moderate

1

2

3

4

Examples of risks• Failure to provide stable and resilient technology platforms
that meet business demands across retail and corporate
environments could result in failure to deliver the strategy
and negatively impact business operations due to poor
system performance and/or system outages• Failure to provide technology platforms that meet customer
demands and support innovation could result in failure todeliver the strategy and loss of revenue• Extended technology refresh cycles leading to unsupported
hardware systems

Mitigating actions• We have an established IT operating model, aligned with thebusiness strategy and functions• Our mature governance framework is embedded with
Executive representation to support IT investment decisions,key risk management and operating budgets• We continuously implement controls to improve operationof the Group’s IT systems, for example, preventative
maintenance, landscape health and third-party management• We leverage technology partners to support service delivery
and continuous improvement• We build resilience through Business Continuity and IT
Disaster Recovery plans and exercises• We have a tested Group Incident Management framework inplace to report, escalate and appropriately respond to incidents

10. People
Changes and challenges in the external environment may
impact our ability to attract, motivate, develop and retain
employees and to maintain a workforce that encompasses
diverse backgrounds with the right capabilities to drive
performance and meet our strategic objectives.

Risk movement

Risk tolerance

Link to strategy

Low

4

Examples of risks• Ability to retain talent and meet the needs of the future
workforce (for example, providing support during morechallenging macroeconomic economic conditions andmeeting the demands of a hybrid workforce), while remaining
competitive in the market in which we operate• Sustained periods of attrition affecting business continuity,organisational resilience and customer experience• Loss of critical talent or business knowledge leading
to potential talent gaps in core business functions• Ability to retain talent that is reflective of our diversity, equity
and inclusion ambition and the global markets we operate in• Sustaining employee engagement, wellbeing and inclusion
in a more challenging environment and through ongoing
business change• Potential adverse impact on our culture

Mitigating actions• Management regularly reviews talent capabilities to ensurealignment with evolving business needs, prioritising inclusive
hiring practices and internal talent pool to identify talent,
opportunities to upskill employees and to develop highpotential employees for critical roles• Our reward philosophy provides colleagues across the Group
with a competitive total reward package, including fixed pay,
variable pay linked to performance, and a suite of benefits
that are market-aligned. Regular pay analysis is conductedto ensure our reward offering is competitive• We have robust learning and development programmes
to enhance both technical skills and leadership capabilitiesaligned to our Leadership Standards (for example, Manager,
Senior Manager and Executive Development Programmes
and comprehensive digital learning resources)• We have Diversity, Equity and Inclusion policies and practices
with regular review/external benchmarking with industry bestpractice to attract external talent and to design and deliverinitiatives and policies that are most important to our colleagues
at global and regional levels• We offer various colleague engagement moments andchannels (for example, employee forums and colleague
surveys) to listen, gather feedback and take action• We are committed to our ESG ambition and engage ourcolleagues through various initiatives and partnerships

89

Burberry Annual Report 2023/24

Strategic Report | Principal Risks

Compliance risks
11. Intellectual property and brand protection
Sustained breaches of Burberry’s IP rights or allegationsof infringement by Burberry pose a risk to our brand.
Counterfeiting, copyright, trademark and design infringementin the marketplace could reduce demand for genuine Burberry
merchandise and impact the luxury positioning of the brand.
Failure to implement appropriate brand protection controls
in connection with our commitment not to destroy unsaleable
finished products could negatively impact the integrity andthe sustained luxury positioning of the brand.

Risk movement

Risk tolerance

Link to strategy

Low

1

The Group is subject to a broad spectrum of laws and regulationsin the various jurisdictions in which it operates. These include
laws and regulations relating to product safety, anti-bribery andcorruption, competition, data, corporate governance, employment,
environment, tax, trade compliance, sanctions, human rights,
and employee and customer health and safety. Changes to laws
and regulations, potential non-compliance or a major compliancebreach, could have a material impact on the business and ourfinancial performance.

Risk movement

Risk tolerance

Link to strategy

Low

1

2

3

4

4

Examples of risks• Counterfeiting and unauthorised use of trademarks and other
IP in the marketplace can reduce the demand for genuine
Burberry merchandise, impact revenues and damage
Burberry’s brand image• External procedural delays can slow protection for new
branding and signifiers, and are subject to the varying
degrees of protection and enforcement opportunities
depending on the relevant national laws
• Increased challenges against Burberry’s IP rights by third
parties in response to claims of infringement as well as anincrease in bad faith filings• Allegations from third parties of IP infringement by Burberry
could negatively impact Burberry’s reputation and result inclaims and financial loss through infringing products or content• Distribution outside our authorised network and parallel trade
could negatively impact demand for Burberry products andharm our luxury reputation• Unauthorised trade in non-fungible tokens (NFTs) and virtual
items incorporating Burberry’s IP could damage Burberry’s
brand and impact our initiatives in the metaverse

Mitigating actions• We conduct brand protection enforcement globally. Where
infringements are identified, these are addressed throughappropriate action, including criminal, civil and administrative
legal action and negotiated settlements• We partner with enforcement agencies and digital and social
media platforms to disrupt the flow of counterfeit products
by enforcing at source level• We continuously explore new and emerging threats and ways
to combat threats. Existing branding and new brand signifiers
are protected globally by trademarks, copyrights and designs
registered across all appropriate categories, extending into
new fields of activity, including the metaverse, and byunregistered rights• The Brand Protection team partners with the Design andCreative Content teams to ensure that our products and content
do not infringe the rights of third parties, and to establish
adequate protections• Brand protection controls have been implemented tosafeguard the brand in connection with our commitment tostop destroying unsaleable finished products• Our onboarding processes for new vendors involve a brandprotection risk assessment, and we work with vendors toensure they respect our IP

90

12. Regulatory risk and ethical/environmental
standards

Examples of risks• Regulatory non-compliance (including, for example, failure tocomply with applicable data protection legislation, anti-money
laundering regulations, ESG regulations or applicable sanctions
legislation) by the Group or associated third parties working
on its behalf may result in financial costs and/or penalties,
supply chain disruption, legal proceedings and/or reputational
damage to our business• Failure by the Group or associated third parties to act
in an ethical manner consistent with our Code of Conduct,
Responsible Business Principles, or our Responsibility
agenda could result in reputational damage to the Group• Tax is a complex area where laws and their interpretations
change frequently, including the requirement for increasedtransparency. Differing interpretations globally or noncompliance by Burberry and its associated third parties could
result in increased levels of tax authority challenge, financial
loss and/or reputational damage• Additional customs duty, trade or non-tariff trade barriers,and quotas may impact the cost of operations and efficiencyof our global supply chain

Mitigating actions• Specialist teams at corporate and regional levels, supportedby third-party specialists where required, are responsible for
ensuring the Group’s compliance with applicable laws, tax
requirements, ethical and business policies and regulations,and that colleagues are aware of the policies, laws andregulations relevant to their roles. Teams report to specialist
committees (for example, Sustainability Committee, Ethics
Committee, Data Privacy Committee, Audit Committee)
and Board as appropriate• Our Code of Conduct sets out policies and guidance toensure that our colleagues and third parties act lawfully
and in accordance with Burberry’s values, including our
Responsible Business Principles. Training on the Code of
Conduct for colleagues is conducted annually. For our supply
chain partners and other key partners, the Code of Conduct
forms part of our contractual agreements• International tax developments are a key focus of attention,with Burberry’s global Tax strategy reported to the Audit
Committee on an annual basis• Our appropriately qualified Legal and Tax teams seek external
advice on legislative changes• Our Authorised Economic Operator (AEO) and trade complianceprogramme is in place to ensure we keep up to date with all
relevant regulations. We work closely with our third-party
specialists to ensure complianceBurberry Annual Report 2023/24

Strategic Report | Viability Statement

VIABILITY STATEMENT
Corporate planning process
Burberry’s annual corporate planning process consists of
preparing a long-term strategic plan, forecasting the current
year business performance and preparing a detailed budget
for the following year. These plans form the basis for assessing
the longer-term prospects of the Group. Our strategic planning
process includes detailed reviews of the budget, forecasts andlong-term plans by our CEO and CFO in conjunction with our
Regional and Functional Management teams, followed bya presentation and discussion of the long-term strategic planby the Board. Delivery against the plan is monitored throughmonthly reporting on actual performance, the annual budget
process and subsequent forecast updates.
The key assumptions considered in our strategic plan are future
sales performance by product, channel and geography; thecost to procure and produce our products; other expenditureplans; cash generation and that there is no material long-term
impairment to the Burberry brand. We also consider the Group’s
projected liquidity, balance sheet strength and the potential
impact of the plan on shareholder returns. Where appropriate,
we have adjusted our planning process to include scenarios
relating to key assumptions as a result of the uncertain
macroeconomic and geopolitical environment.

Assessment of prospects
We remain confident in our ability to consolidate our position
in luxury fashion and are committed to our strategic vision for
Burberry. The Group’s strategy is set out on pages 18 to 21.
Strategic progress made in the current year includes our
refocused storytelling around Modern British Luxury, is helping
to clarify what we stand for, and how we are perceived, in theminds of luxury consumers. This has helped drive double-digit
growth in elite customer numbers and spend. We have also
strengthened our distribution network with more than 50%
of stores now new or refurbished.
The Group’s key priorities for FY 2024/25 are to continue torefine brand expression, incorporating more timeless, classic
attributes in communications. We will increase product focus
in storytelling with dedicated moments to key categories andprioritise marketing investment in Mainland China and the USA
to strengthen brand visibility and consumer engagement as well
as strengthen customer recruitment and engagement throughlocally relevant campaigns and activations.
In product, we have a strong foundation in heritage rainwear
and will build out our core offer in FY 2024/25, ensuring balance
between seasonal and core collections. We will build on outerwear
category strengths and develop full product offer in ready-to-wear.
We have a well-established network of stores in high-visibility
locations, which we have continued to strengthen. We willcontinue to deliver our store refurbishment programme andstrengthen visual merchandising in store. We will maximisecommercial opportunity for Burberry.com and expand
omnichannel capabilities and further rationalise our wholesalechannel with focus on EMEIA.

Our drive to deliver Operational excellence is directed towards
unlocking speed and continuing to elevate customer experience,
further embedding cost discipline and efficiencies anddelivering process and technology improvements.
We will continue to focus on our advanced environmental andsocial responsibility agenda and deliver against Burberry
Beyond targets.
Balance sheet and liquidity: our objective is to manage thebusiness efficiently and flexibly, maintaining control andpreserving the long-term value of the Burberry brand while
ensuring we secure the financial headroom required tofuel growth as market opportunities arise. The businessis expected to remain cash generative, creating further
optionality for investment.
Considering the continuing uncertain global consumer demandand geopolitical environment, we have prepared several planningscenarios based on a range of assumptions and potential
outcomes. In assessing the viability of the Group, the Board
has carried out a robust assessment of the principal risks of theGroup, as set out in the Risk report on page 83, and the principal
risks and uncertainties as set out on page 84.
The Directors have considered the potential impact of the risks
on the viability of the Group.

Basis of assessment
The assessment of viability has been made with reference to
the Group’s current position and expected performance over athree-year period to March 2027. This is considered appropriate
for use by the Directors because:• It aligns with the Group’s approach to long-range planning• It is sufficient to almost cover all currently approved capital
expenditure projects• As the Group has little contracted income, and as mostcurrent business development projects will be completed
in the three-year period, projections beyond this period willcontain long-term growth assumptions

Scenarios
We have developed a range of scenarios, which were informed
by a comprehensive review of macroeconomic scenarios using
third-party projections of macroeconomic data for the luxury
fashion industry and financial outcomes of risks materialisingacross the industry over the last 10 years. In developing thesescenarios, the Directors have assumed there is no material
long-term impairment to the Burberry brand.
The Group central planning scenario reflects a balanced
projection aligned to the group’s strategy, a balanced assumption
for economic uncertainty and capital expenditure and dividends
in line with the Group’s capital Allocation Framework. It reflects
FY 2024/25 and the subsequent two-year period to March 2027.
As a sensitivity, this central planning scenario has been flexedby a 13% downgrade to revenues in FY 2024/25 and a 10%
reduction in revenues across the full three-year period,
as well as the associated consequences for EBITDA and cash.
Management considers this represents a severe but plausible
downside scenario appropriate for assessing going concern
and viability. This was designed to test an even more challenging
trading environment as a result of macroeconomic uncertainty
together with the potential impacts of the Group’s otherprincipal risks, as described on pages 85 to 90.

91Burberry Annual Report 2023/24

Strategic Report | Viability Statement

For the purposes of the reverse stress test, we have considered
the plausibility of a scenario that erodes the remaining cash
headroom by reference to the lowest cash level in the annual
business cycle. This test identified that the amount of revenue
decline required on top of the severe but plausible scenario
before the Group requires additional fundraising over
the three‑year period to March 2027 was, in the Group’s
opinion, implausible.
The severe but plausible downside modelled the following risks
occurring simultaneously:• A severe impact arising from a more severe and prolonged
reduction in the GDP growth assumptions across the markets
in which we operate, combined with a reduction to our global
consumer demand arising from a change in consumer
preference compared to our central planning scenario• An increase in geopolitical tension which reduces GDP
growth assumptions compared to the central planning model• A significant reputational incident, such as negative sentimentpropagated through social media• The impact of a business interruption event, resulting
in a two week interruption arising from the supply chain
impact, and interruption to one of our channels following
a technology vulnerability• A significant reputational incident such as negative sentimentpropagated through social media• The occurrence of a one-time physical risk relating to climatechange in FY 2024/25 and the materialisation of a severe but
plausible ongoing market risk relating to climate change
in line with a scenario reflecting a 2°C global temperature
increase compared to pre-industrial levels• The payment of a settlement arising from a regulatory
or compliance-related matter• A short-term impact of a 10% weakening in a key non-sterlingcurrency for the Group before it is recovered throughprice adjustment• The repayment of the Sustainability Bond without raising
new financeThis approach provides the Board reasonable comfort that theGroup’s going concern and viability positions have beenassessed to a severity level, which more than accommodates
the impact of one or more of the Group’s principal risks.

92

Funding
In assessing the viability of the Group, the Directors have also
considered the Group’s current liquidity and available facilities(set out in note 27 of the Financial Statements), financial risk
management objectives and hedging activities (set out in note
27 of the Financial Statements). In our central planning andsevere but plausible downside scenarios, the Group maintained
the necessary liquidity levels.
The Group has a five-year £300 million 1.125% unsecured
sterling Sustainability Bond which is due for repayment in
September 2025, within the going concern and viability period.
The viability modelling undertaken includes the capacity for thisto be repaid in September 2025 during the period under review.
The Group has access to a £300 million Revolving Credit Facility(RCF), currently undrawn and assumed to be available during
the going concern and viability assessment. The Group has
considered renewal of the RCF ahead of maturity in July 2026
and are confident that this will be available.

Conclusion
Based on this assessment, the Directors have a reasonable
expectation that the Group will be able to continue in operationand meet its liabilities over the period to March 2027.
The Strategic Report up to and including page 92 wasapproved for issue by the Board on 14 May 2024 and signed
on its behalf by:Gemma Parsons
Company SecretaryBurberry Annual Report 2023/24

CORPORATE GOVERNANCE
STATEMENT
Chair’s Introduction

94

Board of Directors

95

Executive Committee

100

Corporate Governance Report

101

Division of Responsibilities
Governance Structure and Division of Responsibilities

107

Composition, Succession and Evaluation
Board Evaluation
Report of the Nomination Committee

111
113

Audit, Risk and Internal Control
Report of the Audit Committee

118

Remuneration
Directors’ Remuneration Report
Directors’ Report

125
143

93

Burberry Annual Report 2023/24

Corporate Governance Statement | Chair’s Letter

CHAIR’S INTRODUCTION“The Board continues
to take opportunities
to hear the view ofBurberry employees
through a varietyof activities”

Dear Shareholder,
On behalf of the Board, I am pleased to present the Corporate
Governance Report for the year ended 30 March 2024. This
report describes Burberry’s corporate governance framework
and procedures and summarises the work of the Board and
its Committees to illustrate how we have discharged our
responsibilities this year.

Areas of focus
It has been a busy year for your Board which has met more
frequently than usual and formally on eight occasions. I am
grateful to my fellow Board members for their engagement
and commitment during the year. Our Board meetings, which
included an extended strategy session in October 2023, haveprovided the Directors with a number of opportunities toengage with executive management from across the businessand get to know newer members of the Executive Committee.
As we have reported elsewhere in this Annual Report,
FY 2023/24 has brought some challenges and it has been more
important than ever that the Board has operated effectively
and focused on the key issues. Areas of focus for the Board
during the year are set out on page 104. The overriding theme
for the Board has been to oversee the execution of Burberry’s
strategy, whilst supporting management in a challenging
trading environment.

Board changes during FY 2023/24
Matthew Key retired as a Non-Executive Director following theAnnual General Meeting (AGM) on 12 July 2023, having served
over nine years on the Board. Following Matthew’s retirement,
Alan Stewart was appointed Chair of the Audit Committee.
On 17 July 2023, we welcomed Kate Ferry to the Board as Chief
Financial Officer (CFO) and, on 1 September, Alessandra Cozzani
joined Burberry as a Non-Executive Director and member ofthe Audit and Nomination committees. More information on the
induction programmes for Kate and Alessandra can be foundin the Nomination Committee Report on page 116. We have also
made some changes to our Board committees, with Danuta Graybeing appointed as a member of the Audit Committee and Alan
Stewart being appointed as a member of the Remuneration
Committee on 12 July 2023.
As announced on 12 April 2024, Debra Lee will retire as a
Non-Executive Director following the AGM in July 2024, having
served on the Board since 1 October 2019. I would like to thankDebra for her wise counsel and service to the Board during thelast five years.

94

Board effectiveness
The Board conducted an externally facilitated evaluation of its
effectiveness during the year. This in-depth review covered theperformance of the Board as a whole as well as the effectivenessof our Board Committees. I am pleased to report that theoutcome of the review was that the Board operates effectively.
There are nevertheless, a number of areas identified which
would enhance effectiveness and the Board will focus on theseduring FY 2024/25. Details of the process, conclusions andrecommendations are set out on page 111. We also report on theactions taken during FY 2023/24 following last year’s internal
evaluation on page 112.
One of my duties as Chair of the Board is to review theperformance of my fellow Directors, a process which I carryout each year, with the aim of ensuring that each Board member
is able to contribute to the best of their ability. Inducting new
Directors thoroughly is critical to the continuing effectiveness of
the Board. The Nomination Committee has performed the annual
review of Directors’ time commitments and independence onbehalf of the Board and further information on its considerations
are contained within the Nomination Committee Report on
pages 113 to 117.

Employee voice
The Board continues to take opportunities to hear the viewof Burberry employees through a variety of activities, including
meetings of the Global Workforce Advisory Forum. Forummeetings provide my fellow Non-Executive Directors and mewith the opportunity to shine a light on Burberry’s culture, findout whether our values are embedded and hear first-hand what
is top of mind for our colleagues around the world. It is very
valuable feedback and I am grateful to our Forum members
for participating and for their frank and constructive
comments and advice.

Compliance with the UK Corporate
Governance Code
Burberry complied with the requirements of the UK Corporate
Governance Code during the financial year. In January 2024,
the Financial Reporting Council published its revised 2024 UK
Corporate Governance Code (the ‘new Code’) and we will be
reviewing our governance framework and practices in light ofthese reforms to understand the impact and ensure readinessto report against the new Code for FY 2025/26.
I am pleased with the way our governance processes haveoperated during the year and served to support Burberry forthe long term.

Gerry Murphy
ChairBurberry Annual Report 2023/24

Corporate Governance Statement | Board of Directors

BOARD OF DIRECTORS
Burberry’s Board is responsible for the long-term success of our Company and is accountable to its shareholders.

Committee key
Chair
A

Audit Committee

N

Nomination CommitteeR

Remuneration Committee

Skills key
Operational excellence
Luxury brands
Digital and media

Dr Gerry Murphy (68)

Jonathan Akeroyd (57)

Environment/sustainability

Chair

Chief Executive Officer

Retail, sales and marketing

N

Financial expertise• Appointed as Chair: 12 July 2018
• Appointed: 17 May 2018
• Nationality: Irish• Board skills

Key skills and experience
Gerry brings substantial internationaland senior management experienceto the Board, in addition to in-depth
knowledge of managing business
transformations. His understanding of
UK corporate governance requirements
and extensive experience in the retailsector provides the Board with highly
relevant and valuable leadership as
Burberry continues to focus on delivering
long-term sustainable value for all
our stakeholders.

Current appointments• Chair, Tesco plc• Trustee, The Burberry Foundation• Senior Advisor, Perella Weinberg• Mentor, J&A Mentoring• Appointed: 15 March 2022
• Nationality: British• Board skills

Key skills and experience
Jonathan is an experienced leader witha strong track record of building luxury
brands and driving profitable growth.
He has extensive experience across the
fashion and luxury goods sector, witha focus on brand and product elevationand strategic development, as well as
digital and global expansion. He shares
Burberry’s values and appreciationof craftsmanship, creativity and quality.
Jonathan’s expertise and leadershipskills have been pivotal in advancing thenext phase of Burberry’s evolution.

Previous appointments• CEO of Gianni Versace SpA• President and CEO of Alexander
McQueen• Harrods: various senior retail roles,
including Executive Merchandise
Director and Director of Menswear,
Sports and Childrenswear

Previous appointments• Chair: Tate & Lyle plc and The
Blackstone Group International (andpartner in the firm’s private equity
investment unit)• Non-Executive Director: British
American Tobacco plc, MerlinEntertainments plc, Reckitt Benckiserplc, Abbey National plc and Novar plc• CEO: Kingfisher plc, Carlton
Communications plc (now ITV), Exelplc and Greencore Group plc

95

Burberry Annual Report 2023/24

Corporate Governance Statement | Board of Directors

Kate Ferry (51)Orna NíChionna (68)

Fabiola Arredondo (57)

Chief Financial Officer

Senior Independent Director

Independent Non‑Executive
Director• Appointed: 17 July 2023
• Nationality: British• Board skills

Key skills and experience
Kate is a highly experienced Chief
Financial Officer, having held roles
in both public and private companies.
In addition to her financial acumen,
Kate has extensive experience driving
business transformation and strategic
development, and a deep understandingof public markets. She has particularexpertise in the retail sector, as well as
an excellent understanding of the luxury
industry. In her early career, Kate
was involved in numerous IPOs,
including Burberry’s in 2002. Kate
is a Chartered Accountant.

Current appointments• Non-Executive Director and Chairof the Audit Committee, Greggs plc• Trustee and Chair of the Audit
Committee, British Olympic
Foundation

NR• Appointed: 3 January 2018
• Nationality: Irish• Board skills

Key skills and experience
Orna has strong UK plc and international
business experience, especially in the
consumer and retail markets. She also
brings to the Board significant strategic,
financial and governance experience.
Orna is a committed environmentalist
and was Chair of the Soil Association(which campaigns for moreenvironmentally friendly food andfarming) for six years. Her passion for
the environment is an asset to Burberry
as we continue to drive positive change
and build a more sustainable future
through our ongoing Environmental andSocial Responsibility agenda.

Current appointments• Trustee, Institute for Fiscal Studies• Trustee and Chair, The Eden TrustPrevious appointments

Previous appointments• Chief Financial Officer of McLarenGroup Limited• Group Chief Financial Officer of Talk
Talk Telecom Group PLC• Corporate Affairs Directorof Carphone Warehouse PLC• Director within the retail sector equity
research team at Merrill Lynch• Senior Independent Director: Saga plc
Bupa, HMV, Northern Foods and Royal
Mail• Non-Executive Director: Bankof Ireland UK• Interim Chair, The National Trust• Chair, Founders Intelligence• Partner, McKinsey & Company andco-lead of its European Retail Practice

96

N

R

• Appointed: 10 March 2015
• Nationality: American• Board skills

Key skills and experience
Fabiola built and led a major divisionof Yahoo! Inc. and brings relevantinternational, strategic and operational
experience in the internet and media
sectors to the Board. Through her deep
engagement with the World Wildlife
Fund, Fabiola’s background also includes
overseeing sustainability initiatives.
Her digital and consumer background,
coupled with her extensive international
non-executive directorship experience,
make Fabiola an important memberof the Board.

Current appointments• Non-Executive Director: Campbell
Soup Company and Fair Isaac
Corporation• National Council Member, World
Wildlife Fund for Nature• Member, Council on Foreign Relations• Board Member, FINRA Boardof Governors• Managing Partner, Siempre Holdings

Previous appointments• Non-Executive Director: Experian plc,
BOC Group plc (now Linde Group),
Saks Incorporated (now Hudson’s Bay
Company), Bankinter S.A., National
Public Radio, Rodale Inc., Intelsat Inc.,
Sesame Workshop and the World
Wildlife Fund UK and USA• Senior executive roles at Yahoo! Inc.,
the BBC and Bertelsmann AGBurberry Annual Report 2023/24

Alessandra Cozzani (61)Sam Fischer (56)

Ron Frasch (75)

Independent Non-Executive
Director

Independent Non‑Executive
Director

Independent Non-Executive
Director

A

N

A

N

R

N

R

• Appointed: 1 September 2023
• Nationality: Italian• Board skills• Appointed: 1 November 2019
• Nationality: Australian• Board skills• Appointed: 1 September 2017
• Nationality: American• Board skills

Key skills and experience

Key skills and experience

Key skills and experience

Alessandra brings to Burberry bothfinancial expertise and a profoundunderstanding of the luxury market,
having spent over 20 years at PradaGroup. A highly experienced Chief
Financial Officer, Alessandra’s careerspans a variety of finance roles, including
financial management and control,
accounting, tax, treasury and insurance,
as well as investor relations. She started
her career as an auditor at Coopers& Lybrand.

Sam has a wealth of global leadershipexperience, including leading premium
heritage brands from across the lifestyleand consumer sectors. He has a trackrecord in driving business growth
and a deep understanding of key Asianmarkets, which is an asset to Burberry as
we continue to engage our communities
in the region with innovative products
and culturally relevant experiences.

Ron has spent over 30 years working in
the retail industry. He has clear strategic
acumen, strong leadership skills andwide-ranging experience of working
with luxury fashion brands. While at
Saks, he was instrumental in developing
the company’s private-label collections.
Ron’s merchandising skills andexperience within the fashion industry
will continue to play a pivotal role as
Burberry continues to grow and we
strengthen our performance in theluxury fashion market.

Current appointments• Executive Director, Esselunga SpA(Italian grocer)

Previous appointments• Group Chief Financial Officer andExecutive Director of Prada SpA (listedin Hong Kong S.A.R., China), previouslyGroup Investor Relations Director andother financial management roles
within Prada Group

Current appointments• CEO, Lion Group

Previous appointments• Senior executive roles at Diageo plc,
including President, Asia Pacific andGlobal Travel, Executive Committee
member, Managing Director forGreater China and Managing Director
for South East Asia
• Various commercial and generalmanagement roles at Colgate-Palmolive,
including Managing Director forCentral Europe

Current appointments• CEO, Ron Frasch Associates LLC• Non-Executive Director, Crocs Inc.

Previous appointments• Non-Executive Director: MacKenzie
Childs and Aztech Mountain• President and Vice Chairman, Saks
Fifth Avenue Inc.
• President and CEO, Bergdorf
Goodman• President of the Americas for an
Italian licensing company of luxury
fashion brands

97

Burberry Annual Report 2023/24

Corporate Governance Statement | Board of Directors

Danuta Gray (65)

Debra Lee (69)

Antoine de Saint-Affrique (58)

Independent Non‑Executive
Director

Independent Non‑Executive
Director

Independent Non-Executive
Director

R

A

A

A

N

N

N

• Appointed: 1 December 2021
• Nationality: British• Board skills• Appointed: 1 October 2019
• Nationality: American• Board skills• Appointed: 1 January 2021
• Nationality: French• Board skills

Key skills and experience

Key skills and experience

Key skills and experience

Danuta is a highly experienced
Non‑Executive Director and Chair witha strong understanding of consumers,
technology, sales and marketing within
the UK and international businessmarkets gained through her executive
career. Her extensive UK plc board
experience and understanding of UK
governance requirements make her
a strong asset to our Board.

Debra is one of the most influential
female voices in the entertainment
industry and has a deep understandingof the American consumer and culture.
She is the former Chairman and CEO
of Black Entertainment Television,
which under her leadership became thelargest global provider of entertainment
for the African-American audienceand consumers of black culture.
Debra is a passionate advocate forwomen and people from ethnicallydiverse backgrounds.

Antoine has a wealth of experiencein the consumer sector, having led anumber of global brands throughout his
career. As CEO of Danone, Antoine has
put sustainability at the heart of thecompany’s strategy, setting priorities
which align purpose and performance.
While CEO of Barry Callebaut, Antoine
addressed the most pertinent challenges
in the chocolate supply chain. His
understanding of sustainability and theconsumer market makes him a valued
asset to our Board as we continue
to focus on positively impacting theenvironment and our communities.

Current appointments• Chair: Direct Line Insurance Group plc
and Croda International plc• Board member, Employ Autism
Development• Trustee, The Resolution Foundation

Previous appointments• Chair, St Modwen Property plc• Senior Independent Director,
Aldermore Bank plc• Non-Executive Director andRemuneration Committee Chair:
Old Mutual plc and Page Group plc• Non-Executive Director: Paddy Powerplc, Aer Lingus plc and UK Ministryof Defence• CEO: Telefónica O2 and Executive
Director, Telefónica Europe plc

98

Current appointments• CEO and founder, Leading Women
Defined, Inc.
• Non-Executive Director: Warner Bros.
Discovery, Inc., Marriott International,
Inc. and The Proctor & Gamble Company

Current appointments• CEO and Director, Danone• Non-Executive Director,
Barry Callebaut

Previous appointments

Previous appointments• Chairman and Chief Executive Officer,
Black Entertainment Television LLC• Non-Executive Director: Twitter, Inc.
and AT&T Inc.
• Attorney, Steptoe & Johnson• CEO, Barry Callebaut• President, Unilever Foods andmember of the Group Executive
Committee at Unilever plc• Non-Executive Director, Essilor
International

Burberry Annual Report 2023/24

Alan Stewart (64)Gemma Parsons

Independent Non‑Executive
Director

Company Secretary

A

N

R

• Appointed: 1 September 2022
• Nationality: British• Board skills

Key skills and experience
Alan has extensive corporate financeand accounting experience gained froma variety of industries, including retail andleisure. He has considerable executive
leadership experience, including various
Chief Financial Officer positions within
top FTSE organisations. Alan is currently
a member of Chapter Zero, a communityof non-executive directors committed
to achieving net zero targets, and wasa founding member of the Accounting
For Sustainability CFO network. His keeninterest in sustainability is important to
the Board in driving Burberry’s climatechange strategy. Alan qualified as achartered accountant with Deloitte.

• Appointed: 1 October 2018
• Nationality: British

Current appointments• Fellow of the Chartered
Governance Institute and has
more than 26 years’ company
secretarial experience• Member of the Chartered
Governance Institute’sCompany Secretaries’ Forumand of the Associationof General Counsel andCompany Secretariesof the FTSE 100 (GC100)

Previous appointments• Company Secretary of The
Berkeley Group Holdings plc• Deputy Company Secretaryof Smith & Nephew plc• Deputy Company Secretaryof TSB Banking Group plc

Current appointments• Non-Executive Director and Chairof Audit Committee, Diageo plc

Previous appointments• Non-Executive Director and Chairof Remuneration Committee,
Reckitt Benckiser Group plc• Non-Executive Director and
Audit Committee Chair, Games
Workshop Group• Chief Financial Officer, Tesco PLC• Chief Financial Officer, Marks& Spencer PLC

Directors whose tenure ceased
during FY 2023/24:• Matthew Key stepped down
as Non-Executive Director
and Chair of the Audit
Committee on 12 July 2023.

99

Burberry Annual Report 2023/24

Corporate Governance Statement | Executive Committee

EXECUTIVE COMMITTEE

Jonathan Akeroyd

Kate Ferry

Giorgio Belloli

Klaus Bierbrauer

Chief Executive Officer

Chief Financial Officer

Chief Digital, Customer
and Innovation Officer

Chief Supply Chain andIndustrial Officer

Gianluca Flore

Rod Manley

Alexandra McCauleyMark McClennon

Chief Commercial
Officer

Chief Marketing Officer

Chief People Officer

Chief Information Officer

Nick Pope

Edward Rash

Delphine Sonder

Chief of Staff, Strategy
and Growth Projects

General Counsel

Chief Merchandising
Officer

Changes to the Executive Committee since FY 2022/23• Kate Ferry joined the Committee on 17 July 2023
• Nick Pope joined the Committee on 18 September 2023
• Alexandra McCauley joined the Committee on 15 November 2023
• Ian Brimicombe was a member of the Committee until 17 July 2023
• Leonie Brantberg was a member of the Committee until 18 October 2023
• Melissa Johnston was a member of the Committee until 20 February 2024

100

Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

CORPORATE GOVERNANCE REPORTUK Corporate Governance Code compliance
The 2018 UK Corporate Governance Code (the Code) sets out the framework of governance for premium listed companies within
the UK. As a premium listed company, Burberry is subject to the Principles and Provisions of the Code, which is published by the
Financial Reporting Council (FRC) and can be found on its website: frc.org.uk. During FY 2023/24, Burberry complied in full withthe provisions of the Code.
In January 2024, the FRC published a new version of the UK Corporate Governance Code, which will apply to Burberry fromFY 2025/26, save for provision 29, which will apply from FY 2026/27. During the interim period, we will be assessing the impactof the new Code on our current governance framework and any changes we may want to consider to ensure alignment.
This Corporate Governance Report provides an overview of the Board’s approach to governance and the work it has undertaken
during FY 2023/24. Details on how we have complied with the Code’s provisions and applied the Code’s principles can be foundthroughout the Annual Report. Key highlights of the Company’s compliance along with cross references to other sections of theAnnual Report are detailed below.

How we apply the principles of the Code
Pages

Board leadership and company purpose
Chair’s Introduction
Strategic Report94
2 to 92

The role of the Board

108 to 110

Purpose and culture

103 to 106

Stakeholder and workforce engagement

80 to 82

Division of responsibilities
Board composition

109, 116 and 117

Role of the Chair, Senior Independent Director, Non-Executive Directors and Company Secretary

109

Time commitment, external appointments, independence and tenure

110

Composition, succession and evaluation
Appointment to the Board and succession planning
Skills, experience and knowledge of the Board

113 to 117
113

Board diversity

116 to 117

Board evaluation

111 to 112

Audit, risk and internal control
Auditor independence and effectiveness of the audit

122 to 123

Principal and emerging risks

83 to 90

Risk management activities

83 to 90

Fair, balanced and understandable assessment
Viability Statement

124
91 to 92

Remuneration
Directors’ Remuneration Report
Directors’ Remuneration Policy
Engagement with stakeholders on remuneration

125 to 142
128
126 to 127

101Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

Governance structure and divisionof responsibilities
The Board (supported by its Committees) is collectively
responsible for how Burberry is directed and controlled.
Its responsibilities include:• Promoting Burberry’s long-term success• Setting its strategic aims and values• Supporting leadership in delivering strategy• Supervising and constructively challenging leadership on
the operational running of the business• Ensuring a framework of prudent and effective controls• Reporting to shareholders on the Board’s stewardshipMore information on the Company’s governance structure
can be found on page 107.

Environmental, Social and Governance
Sustainability is an essential element of Burberry’s strategy
for which the Board is responsible. Accordingly, the Board isalso responsible for ensuring its approach to sustainability is
integrated into and implemented across the business, reflecting
the increasing importance of these topics to the Group andsociety as a whole. The governance framework of committees
and advisory forums (as shown in the diagram on page 107)
provides regular updates and key information to the Board toensure that it is able to make informed decisions. Sustainability
is embedded into the remit of the committees where appropriate.
For more information on the Group’s Environmental and Social
priorities see pages 30 to 62.

Stakeholder engagement
As highlighted by the Code, the Board recognises
the importance of identifying its key stakeholders andunderstanding their perspectives and values. Through regulardialogue and communication, the Board is mindful of all of
Burberry’s stakeholders when planning or making decisionsof strategic significance.
The Board has chosen to engage with the workforce through theformally constituted Global Workforce Advisory Forum, which isone of the methods set out in Code Provision 5. The Board uses
additional ways to understand employee views including the
Employee Engagement Survey and site visits. During the year,
the Board visited a number of stores and operations globallyand had opportunities to speak to colleagues.
Our Investor Relations team met with over 420 investors
during the financial year. Our Chair, Independent Non-Executive
Directors, Executive Committee and other members of senior
management met with 56 investors. This engagement included
presentations to investors and analysts following the releaseof the Group’s quarterly, half- and full-year results (available on
the Group’s website, Burberryplc.com) and meetings with the
majority of the Group’s 20 largest investors. Topics discussed
in investor meetings included strategy, performance of productdesigned by Daniel Lee, regional performance, managementchanges and our sustainability agenda. The team also arranged
specific ESG engagements with investors and analysts.
At the 2023 AGM, all resolutions were passed, although theCompany received more than 20% of votes against the
re-appointment of Antoine de Saint-Affrique as a Non-Executive
Director of the Company. The Board acknowledges the outcomeof the vote and has actively engaged with significant shareholders
to understand their concerns. Further details can be foundon page 115.
Our Investor Relations and Company Secretariat departments
act as the centre for ongoing communication with shareholders,investors and analysts. The Board receives regular updates about
the views of the Group’s major shareholders and stakeholders
from these departments as well as via direct contact.
Further information on how the Board has engaged with its key
stakeholder groups can be found on pages 80 to 82.

102Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

MONITORING OUR CORPORATE CULTURE
Burberry’s purpose, Creativity OpensSpaces, and the values that underpin it, form
the framework for how we operate and the
expectations we have of our colleagues.
During FY 2023/24, we continued to embed
Burberry’s Leadership Standards throughout
the organisation. The Board leads by
example and promotes the desired culture.
How the Board monitors culture
The Board uses a variety of mechanisms to listen to andunderstand colleagues’ views. The Board has continued its
programme of interactions with Burberry colleagues, throughglobal site and store visits. Our Global Workforce Advisory Forum(the Forum) continues to provide opportunities for insightful
and meaningful discussions with colleague representatives.
The Forum brings together colleague representatives to meetwith members of the Board to discuss key topics. In FY 2023/24,
the Forum met three times and discussed reward and benefits,
sustainability, colleagues’ views and sentiment on whether
they feel able and comfortable to voice their thoughts and the
key things they feel inhibit Burberry delivering on operational
excellence. The Forum is chaired by our Chief People Officer witheach meeting attended by our Chair and one other Non-Executive
Director. The Forum has proportionate representation from allareas of our business and the countries and territories in which
we operate. It provides a mechanism for the Board to understandwhether the culture is embedded and aligns with Burberry’s
purpose and values.

Our cultural indicators
MeasureDescription

PurposeCreativity Opens Spaces and guides ourinteractions with each other, our customers
and communities.

Collaboration We listen, work well together and support eachother to get things done.
Learning

We incorporate learning on critical topics into
our work to remain safe and secure.

Humanity

We create safe environments for colleagues atwork and care about their health and wellbeing.

Execution

We move quickly and reliably and create great
experiences for our customers.

Integrity

We are fair and objective when dealing withcolleague behaviour and create psychologicalsafety for colleagues to speak up.

The Board measures the progress on Burberry’s culture
by tracking against six key cultural indicators using insights
gathered through listening sessions, colleague surveys,
customer service surveys and people data on turnover, learningand wellbeing. With the aim of supporting an inclusive culture
where colleagues can thrive, the Burberry values have beenconnected to how colleagues are rewarded and recognised for‘what they do’ and ‘how they do it’. Recognising that people
leaders play a pivotal role in our colleagues’ experience theLeadership Standards are woven throughout the development
programmes with a focus on elevating leadership capabilities.
The Employee Engagement Survey, and data points referenced
for the culture indicators, tell us what our colleagues feel
it is like to work at Burberry. The overall sentiment from the
FY 2023/24 survey and culture indicators provided a positive
response from colleagues, with good engagement, and anincreasing belief in our brand and prospects, indicating thatcolleagues believe in Burberry’s purpose, are proud of the
product and services and are excited by Burberry’s future.
Fostering a thriving culture is an ongoing process and, for
FY 2024/25, the Board will continue to oversee and support
efforts that drive behaviours and actions that shape a positive
culture at Burberry.

103

Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

PRINCIPAL AREAS OF FOCUS
FOR THE BOARD DURING FY 2023/24
Area of focus

OutcomeStrategy and Operations• Review of regional updates• Receive progress report on Value Chain
Excellence programme• Review of strategic progress and prioritisation of areasof focus within the long-term strategic plan.
• Consider market trends and the implication on areasof strategic focus including operational priorities,
product evolution and marketing.

• Support for operational priorities• Approval of marketing plan
• Questioning, challenging and providing feedback
to the management team and supporting the
programmes undertaken

Finance• Approving the FY 2023/24 budget• Review and scrutinise full and half year financial results
and trading announcements• Review capital allocation framework• Consider capital expenditure for flagship store offering• Review FY 2024/25 budget scenarios and three year plan
• Review operational expenditure• Approval of the FY 2023/24 budget and ‘in principle’ support
for the FY 2024/25 budget and three year budget forecasts• Approval of financial statements• Approval of £400m share buyback• Approval of the recommendation to shareholders
to pay a final dividend of 44.5p per share• Approval of two flagship stores

Culture and Colleagues• Assess and monitor culture through the organisation culture• Review progress against the Diversity, Equity andInclusion strategy• Considering the People Priorities for FY 2024/25• Approval of senior management ethnicity target• Support for the initiatives presented by management

Corporate Responsibility• Discussion of the community and investment strategy
for FY 2024/25• Review environmental targets• Review of the Company’s Modern Slavery Statement• Review of proposed environmental priorities further
to updates from the Sustainability Committee• Approval of donation of FY 2023/24 adjusted profit before
tax to social and community causes worldwide• Approval of the Company’s Modern Slavery Statement• Approval of environmental targets

Risk• Consider cybersecurity risk
• Review of emerging and principal risks• Consider the Company’s risk appetite• Approval of tolerance levels of principal risks• Approval of the Group’s Risk Appetite

Governance• Review of Board evaluation planning and process• Review of investor sentiment• Receive feedback from the Global Workforce Advisory Forum• Annual review of governance related policies

104• Approval of key areas of focus following board
evaluation process• Approval of annual governance related policies• Board insight and awareness of colleague sentiment throughGlobal Workforce Advisory Forum feedback• Actions identified to improve the Board’s overall effectivenessBurberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

KEY DECISIONS DURING FY 2023/24
As explained on page 80, the Board took the views of key stakeholders into account when making decisions
and conducting Board business. Three of the key decisions taken by the Board during FY 2023/24 are set out
below, with an explanation of the stakeholder engagement methods used and how the information gatheredfrom stakeholders informed the Board’s decisions.

Return of capital to shareholders within
the Capital Allocation Framework
In May 2023, the Directors approved a further return of capitalto shareholders by way of a £400m buyback of shares in orderto maintain leverage within the target leverage range.
In making the decision to approve a further share buyback
programme, following the completion of a separate £400m
share buyback during FY 2022/23, the Directors took accountof the views of shareholders which were communicated to theBoard by way of feedback following executive management’s
meetings with institutional investors, feedback following resultspresentations, investor roadshows and by advisors. When taking
the decision to approve the buyback, the Board considered theimpact on cash flow, distributable reserves and longer-term
financial stability of the business. The Board was mindful of thecommitment to deliver value to shareholders whilst balancing
the return with shareholders’ investment for long-term growth.

Value chain excellence programme
The Directors provided oversight of a programme which
commenced in FY 2022/23 focused on optimising the value
chain, including improving the consistency of the assortmentof product across stores, management and sourcing of raw
material including reduction of waste, replenishment of productin stores and focus on the critical path. In overseeing the
programme, the Board took into account customer satisfaction
gained both from trading performance but also feedback from
customers indicating their desire to make purchases fromthe new collection and for on-time delivery. Improvements
in operational excellence accord with shareholder expectations
for seamless execution across the supply chain to support the
new creative direction and implementation of strategy.

Sustainability strategy
Implementation of the sustainability strategy continues to bea key focus of the Board and developments during FY 2023/24
are set out in the sections on environmental and social progresscommencing on page 30. Customers are becoming moreaware of the sustainability of our products, including sourceof materials and circularity, which is part of the story of aluxury product. Shareholders expect Burberry to have soundsustainability credentials and are looking for clarity andtransparency to support long-term viability. Our colleagues
identify with our sustainability goals and want to be part of
implementation. The importance of this to colleagues has beenhighlighted by feedback presented at the Global Workforce
Advisory Forum where colleagues shared that they want to see
the sustainability strategy in action and share our journey withcustomers. Burberry engages effectively with suppliers toestablish effective relationships. Communities benefit fromreduced environmental impact.

Key stakeholders
Customers

Communities

Shareholders

Government

PeoplePartners

105

Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

Board Meetings and Attendance
The Board held eight formal meetings during the financial year,
including an in-depth strategy session in London. If any Director
is unable to attend a meeting, they are given the opportunity
to provide feedback on the accompanying material in advanceof the meeting. Details of attendance at Board and Committee
meetings can be found below.
During the year, the Board and Committee agendas wereshaped to ensure that discussion was focused on our key
strategies and responsibilities, as well as reviews of significant

issues arising during the year, such as changing macroeconomic
and geopolitical conditions. The Group’s ongoing performanceagainst strategic priorities is reviewed at all scheduled meetings.
The Chair and Non-Executive Directors held a closed
session without management present at each Board meeting.
Throughout the year, Directors spent time meeting investors
and interviewing candidates for both executive and non-executiveroles. In addition, Directors undertook store and site visits andattended our fashion shows, town halls, brand events andmeetings of the Global Workforce Advisory Forum.

Directors’ attendance at Board and Committee meetings during FY 2023/24
This is expressed as the number of meetings attended out of the number that each Director was eligible to attend.
Board

Audit

Nomination

Remuneration

Gerry Murphy

8/8

–

2/2

–

Jonathan Akeroyd

8/8

–

–

–

Kate Ferry1

6/6

–

–

–

Orna NíChionna

8/8

–

2/2

4/4
4/4

Fabiola Arredondo

8/8

–

2/2

Alessandra Cozzani2

6/6

3/3

1/1

–

Sam Fischer

8/8

–

2/2

4/4

Ron Frasch

8/8

4/4

2/2

4/4

Danuta Gray3

8/8

3/3

2/2

4/4
–

Debra Lee4

7/8

3/4

2/2

Antoine de Saint-Affrique

8/8

4/4

2/2

–

Alan Stewart5 6

7/8

4/4

2/2

3/3

Matthew Key7

2/2

1/1

1/1

1/1

1. Kate Ferry joined the Board on 17 July 2023.
2. Alessandra Cozzani joined the Board on 1 September 2023.
3. Danuta Gray joined the Audit Committee on 12 July 2023.
4. Debra Lee was unable to attend one Board meeting and one Audit Committee meeting due to prior business commitments.
5. Alan Stewart was unable to attend one Board meeting called at short notice as he was travelling.
6. Alan Stewart joined the Remuneration Committee on 12 July 2023.
7. Matthew Key resigned from the Board on 12 July 2023.

Productivity
The Company continues to demonstrate and develop improving
levels of productivity, owing to strong human capital, training
and development programmes, and focus on elevating thecustomer experience throughout our distribution and retail
networks. Further information about these aspects of thebusiness is provided on pages 19 to 21 and 48 to 57.

Other governance disclosures
The Group is committed to acting with integrity andtransparency on all tax matters and complying fully withapplicable tax laws, having regard to international standards
and guidance on tax practice and tax reporting. The Group will
only engage in responsible tax planning aligned with genuine
commercial economic activities. We will not use tax structuresor undertake artificial transactions, the sole purpose of whichis to create a contrived tax result. For example, we do notparticipate in transactions with parties based in tax havenjurisdictions when the transactions are not in the ordinary
course of Group trading business or which could be perceived
as artificially transferring value to low tax jurisdictions.

106

We are also committed to engaging in open and constructive
relationships with tax authorities in the territories in which
we operate. The Group Tax strategy directs our tax planning,
reporting and compliance activities and is aligned with theGroup’s strategic objectives. Further information regarding
the Group Tax strategy is provided on Burberryplc.com.

Tax governance framework
The CFO is responsible for the Group Tax Strategy, theeffectiveness of tax risk management, tax processes andtransparency of disclosures. The Strategy is implemented by
the global tax and trade compliance teams with the assistanceof the finance leadership team. Compliance with the Group Tax
Strategy is reviewed on an ongoing basis as part of the regularfinancial planning cycle. The Audit Committee is responsible
for reviewing the Group Tax Strategy at least once a year andsignificant tax matters as they arise.

Share capital
Further information about the Company’s share capital,
including substantial shareholdings, can be found in the
Directors’ Report on page 143.

Burberry Annual Report 2023/24

Corporate Governance Statement | Division of Responsibilities

GOVERNANCE STRUCTURE
AND DIVISION OF RESPONSIBILITIES
Governance structure at Burberry
The diagram below illustrates Burberry’s governance structure, flowing from the Board, which comprises
committees and advisory forums. Each has a defined scope, covering one or more of our key Environmental,
Social and Governance topics, and has a formalised reporting line. This structure ensures important matters aremonitored by the right people and establishes an information flow to the Board, enabling it to make informed
decisions and deliver its strategy. Further information on the role of the Board and its principal Committees
is on page 108.

Burberry Group plc Board

CEO

Nomination
Committee

Remuneration
Committee

Audit
Committee

Global Workforce
Advisory Forum

Executive
Committee

Sustainability
Committee

Risk
Committee

Group Treasury
Committee

EthicsCommittee

Cultural Advisory
CouncilInternal Diversity
and Inclusion
Council

Cybersecurity
Steering Group

Data Privacy
Steering
Committee

Group Health and
Safety Committee

Key

Environmental, Social and Governance topics covered

Decision-making

Environment

EthicsAdvisory

Finance and Risk

Legal/Compliance

PeopleCommunities

107

Burberry Annual Report 2023/24

Corporate Governance Statement | Division of Responsibilities

Roles and responsibilities
The Board
The Board is responsible for promoting Burberry’s long-term sustainable success. This is achieved through the establishment of aneffective governance framework, which the Board oversees, and keeping the interests of stakeholders at the fore in decision-making.
Information flows up and down the governance framework to ensure that all decision-making is well-informed, transparent and balanced.
The Board establishes the Group’s purpose and values and sets the Group’s strategy, including sustainability and climate goals,
ensuring alignment with our culture, and overseeing its implementation by management. The Board is also responsible foroversight of the Group’s internal control and risk management, including the Group’s risk appetite.
Specific matters have been reserved for approval by the Board. Details of the key areas of focus of the Board during FY 2023/24
can be found on page 104, and a full schedule of matters reserved for the Board’s decision is available in the Corporate
Governance section of Burberryplc.com. Biographies of the members of the Board can be read on pages 95 to 99, and theindividual roles of directors and the division of responsibilities between them can be read on page 109.
The Board has established Committees to assist with exercising its authority.

Audit Committee

Remuneration Committee

Nomination Committee

Chaired by Alan Stewart

Chaired by Danuta Gray

Chaired by Gerry Murphy

Monitors the integrity of Financial
Statements, including disclosuresassociated with the TCFD
recommendations, and provides
assurance to the Board that theGroup’s internal financial controls
and risk management systems areappropriate and regularly reviewed.
Reviews the Internal Audit programme,
and oversees the work of the external
auditor, approving their remuneration
and recommending their appointment.

Determines the policy for Executive
Director remuneration, aligning with
Burberry’s long-term strategic goals,
and having regard to the views ofshareholders or stakeholders. Sets
the remuneration for the Chair,
Executive Directors and senior
management.

Reviews the composition of
the Board to ensure it remains
appropriate, so the Board is bestplaced to fulfil its role. Ensuresplans are in place for the orderly
succession of both Board and seniorleadership positions. Oversees theformal, rigorous and transparent
procedure for the appointmentof new Directors, keeping in mind
the importance of diversity in all its
forms and balancing skills
and experience.

The Audit Committee is supportedby the Ethics Committee, the Risk
Committee and the Group Treasury
Committee.

Oversees the wider employee
reward policies.
The Directors’ Remuneration Report
can be read on pages 125 to 142.

The Nomination Committee Report
can be read on pages 113 to 117.

The Audit Committee Report can beread on pages 118 to 124.
The Committees may engage third-party consultants and independent professional advisors. They may also call uponother Group resources to assist them in discharging their respective responsibilities. In addition to the Committee
members and the Company Secretary, external advisors and, on occasion, other Directors and members of our senior
management team attend Committee meetings at the invitation of the Chair of the relevant Committee.
The terms of reference for the Audit Committee, Remuneration Committee and Nomination Committee can be viewed
in the Corporate Governance section of Burberryplc.com.

CEOThe Board delegates the day-to-day responsibility for running the Group to the CEO, who is responsible for all commercial,
operational, risk and financial elements of the business. The CEO is also responsible for management and development of thestrategic direction of the Group, for consideration and approval by the Board.

Executive Committee
The Executive Committee assists the CEO in implementing the strategy as approved by the Board. Executive Committee members
are invited, as appropriate, to Board, Board Committee and strategy meetings to inform and update the Board on their areasof responsibility.

108

Burberry Annual Report 2023/24

Board roles and the divisionof responsibilities
Our Board currently comprises 12 members: the Chair, the CEO,the CFO and nine independent Non-Executive Directors whoare experienced and influential individuals, drawn from a wide
range of industries and backgrounds with the skills to promote
the long-term sustainable success of the Group. The Board has
determined that all Non-Executive Directors are independentand the Chair was also considered to be independent
on appointment.
Directors’ biographies, tenures, key skills and experience andexternal appointments are set out on pages 95 to 99.
All Directors are appointed to the Board for an initial fixed
three-year term, subject to annual re-election by shareholders
at the Company’s AGM. In accordance with the Code, all
Directors, with the exception of Debra Lee, will retire and offer
themselves for re-election at the 2024 AGM. Kate Ferry andAlessandra Cozzani, who joined the Board on 17 July 2023 and1 September 2023 respectively, will offer themselves for election
having joined the Board since the last AGM. Debra Lee willcease to be a Non-Executive Director following the 2024 AGM.
To ensure the Board performs effectively, there is a clear
division of responsibilities between the leadership of the Boardand the executive leadership. The roles of the Chair, CEO and
Senior Independent Director are agreed by the Board andare available to view in the Corporate Governance sectionof Burberryplc.com.

Our Chair• Responsible for the Board’s overall effectivenessin directing Burberry• Chairing Board meetings, Nomination Committee meetings
and the AGM, setting the Board agenda, and ensuring
Directors receive accurate, timely and clear information• Ensuring there is effective communication between
the Board, management, shareholders and the Group’s
wider stakeholders• Promoting a culture of openness and constructive
debate, and facilitating effective contribution of all
Non‑Executive Directors• Overseeing the annual Board performance review andaddressing any subsequent actions• Promoting the highest standards of corporate governance• Ensuring the views of stakeholders are taken into accountwhen making decisions

Our Senior Independent Director• Acting as a sounding board for the Chair• Acting as an intermediary for the other Directors,
where necessary• Chairing meetings in the absence of the Chair• Being available to shareholders and stakeholders if they
have any concerns which they have been unable to resolve
through normal channels• Together with the Non-Executive Directors, assessing
the performance of the Chair on an annual basis• Leading the search and appointment process andrecommendation to the Board of a new Chair, if necessary

Our Non-Executive Directors• Providing effective and constructive challenge to the Boardand scrutinising the performance of management against
agreed performance objectives• Leading the appointment process for Executive Directors• Assisting in the development and approval of theGroup’s strategy• Reviewing Group financial information and ensuring there
are effective systems of governance, risk management
and internal controls in place• Ensuring there is regular, open and constructive dialogue
with shareholders• Offering specialist knowledge to the Board

Our CEO• Day-to-day management of the Group and leading the
Executive Committee• Responsible for all commercial, operational, risk and financial
elements of the Group• Developing the Group’s strategic direction and implementing
the agreed strategy, as approved by the Board• Ensuring effective communication and information flows
to the Board and the Chair• Representing the Group to external stakeholders• Responsible for the oversight of the following key functions:
Design, Marketing, Digital, Merchandising, Supply Chain,
Corporate Affairs, Human Resources, Strategy, Global
Commercial, Corporate Responsibility, Corporate
Communications and IT• Responsible for oversight of Burberry’s sustainability agenda
and climate goals

Our CFO• Supporting the CEO in developing the Group’s strategy
and its implementation• Overseeing the global Finance and Business
Services functions and developing the Group’s Capital
Allocation Framework• Responsible for establishing financial planning andmaintaining adequate internal controls over financial reporting• Representing the Group to external stakeholders• Responsible for the oversight of the following key functions:
Investor Relations, Internal Audit and Risk Management,
Business Continuity, Burberry Business Services, Finance,
Insurance, Tax, Treasury and Trade Compliance

Our Company Secretary• Providing advice and support to the Chair and all Directors• Ensuring the Board receives high-quality information andresources in a timely manner so that the Board can operate
effectively at meetings and carry out its duties• Assisting the Chair and Committee Chairs in setting theagenda for Board and Committee meetings• Advising and keeping the Board up to date with all mattersof corporate governance through regular papers andupdates at meetings• Facilitating the induction programme for new Directors and,
together with the Chair, assessing ongoing training needs
for all Directors

109

Burberry Annual Report 2023/24

Corporate Governance Statement | Division of Responsibilities

Time allocation
Executive Directors
Our Board’s Executive Directors are permitted to hold one
external non-executive directorship. Jonathan Akeroyd does nothold any other external directorships. Kate Ferry is an independent
non-executive director of Greggs plc.

Non-Executive Directors
Each of our Non-Executive Directors has a letter of appointment
which sets out the terms and conditions of their directorship.
The Non-Executive Directors are expected to devote the timenecessary to perform their duties properly. This is expected tobe approximately 20 days each year for basic duties. The Chair
and Senior Independent Director are expected to spend additionaltime over and above this to carry out the extra responsibilities
their roles entail. A summary of these roles can be found on
page 109 and full descriptions can be found in the Corporate
Governance section of the Group’s website, Burberryplc.com.

Induction and training
The Company Secretary assists the Chair in designing andfacilitating a formal induction programme for new Directors andtheir ongoing training. Each newly appointed Director receives
a formal and tailored induction programme to enable them tofunction effectively as quickly as possible, while building a deep
understanding of the business. Each induction typically consistsof meetings with both Executive and Non-Executive Directors
and briefings from senior managers across our key businessareas and operations. In addition, Non-Executive Directors areprovided with opportunities to visit key stores, markets andfacilities. This includes visits to our various operating facilities
in the UK and in their country or territory of residence.
Following the initial induction for Non-Executive Directors, anunderstanding of the business is developed through ongoingmeetings and engagements as appropriate. Details of theinduction programmes implemented for Kate Ferry andAlessandra Cozzani are set out in the Nomination Committee
Report on page 116.

The Board has noted changes to Non-Executive Directors’
external appointments during the year and confirms that they
were not perceived to impact their responsibilities to theCompany. In particular, the Board reviewed and approved inadvance Gerry Murphy’s appointment as a Non-Executive Director
and Chair of Tesco plc. In making this decision, the Board was
satisfied that Gerry would be able to continue to devote thenecessary time for the proper performance of his duties as
Chair of Burberry. The Board also noted that Gerry would step
down as Chair of Tate & Lyle plc, as he has since done.

The Chair considers the training needs of individual Directors
on an ongoing basis, and the Board has direct access to theadvice and services of the Company Secretary. To carry out
their duties, Directors may also obtain independent professional
advice, if necessary, at the Group’s expense. To further support
the Board’s ongoing training, at the March 2024 Board meeting,
the Company’s external legal advisors delivered a legal andgovernance update focusing on the Corporate Governanceand Listing regime reforms and the Economic Crime andCorporate Transparency Act 2023.

The Board also considered Danuta Gray’s appointment asa Non-Executive Director and Chair of Croda International plc
and was content that she would continue to have sufficient timeto undertake her role at Burberry.

Managing conflicts of interest

The Board considers that the Chair and all Non-Executive
Directors have fulfilled their required time commitment during
FY 2023/24. In making this assessment the Board consideredthe views of certain shareholders regarding Antoine deSaint-Affrique’s time commitments, further details of which canbe found in the Nomination Committee Report on page 115.

Independence of Non-Executive Directors
Each year, in accordance with its terms of reference, theNomination Committee reviews the independence of the
Non-Executive Directors (excluding the Chair), taking into
account a range of factors, including those set out in Provision
10 of the UK Corporate Governance Code.
As part of their deliberations for FY 2023/24, the Nomination
Committee gave particular regard to Fabiola Arredondo who
was appointed to the Board in March 2015 and has therefore
served on the Board for just over nine years. Following thereview, the Nomination Committee concluded that Fabiola’s
independence was not compromised and that all Non-Executive
Directors continue to be independent.
Please see page 115 for further information on the independence
assessment performed by the Nomination Committee.

110

All Directors have a duty under the Companies Act 2006 to
avoid a situation in which they have, or could have, a direct orindirect conflict of interest or possible conflict of interest with
the Company and/or the Group.
Under the Company’s Articles of Association, the Board has
the authority to approve situational conflicts of interest. It has
adopted procedures to manage and, where appropriate,approve such conflicts.
Authorisations granted by the Board are recorded by theCompany Secretary in a register and are noted by the Board atits next meeting. A review of situational conflicts that have beenauthorised is undertaken by the Board annually.
Following the last review, the Board concluded that thepotential conflicts had been appropriately authorised, that nocircumstances existed which would necessitate that any priorauthorisation be revoked or amended and that the authorisation
process continued to operate effectively.

Burberry Annual Report 2023/24

Corporate Governance Statement | Composition, Succession and Evaluation

COMPOSITION, SUCCESSIONAND EVALUATION
Board evaluation

A number of strengths were identified through the review
process, including:

Evaluating our performance• The Board is well run and highly effective, meetings areinclusive and debate is open and free-flowing• Non-Executive Directors are highly engaged andsupportive of management.
• Board composition is considered to be diverse andwell‑suited to helping management achieve its strategic
and broader stakeholder objectives• There is strong leadership of the Board and Board committees
enabling the Board to successfully maintain its effectivenessdespite there being a number of Board level changes
during the year
• The Board appreciates the CEO’s transparency which enables
the Board to better contribute to discussions

The Board undertakes a formal annual review of its
effectiveness, which is designed to help identify opportunities
to improve and enhance its own performance and that of theGroup. The evaluation process is led by the Chair and includes
a review of the effectiveness of the Board as a whole, theBoard’s committees and each individual Director. Every three
years the review is facilitated externally.
For FY 2023/24, the Board decided to conduct an externallyfacilitated effectiveness review undertaken by Milena Djurdjevic
of CalibroConsult. CalibroConsult is an independent Board
consultant and does not provide any other services to theGroup. During the course of her review, Ms Djurdjevic
interviewed the Chair, committee chairs, Executive and
Non-Executive Directors, the Company Secretary, membersof the Executive Committee and the external advisor to theRemuneration Committee and the Company’s Auditor.
The process also included attending a number of Board andCommittee meetings, both in person and virtually, in order toobserve meeting dynamics and reviewing the papers prepared
for the Board’s consideration.
Milena Djurdjevic sought views on a range of topics including
the effectiveness of Board composition and culture, therelationships between the Board and executive team,
implementation and oversight of the strategic objectives
and progress against the agreed areas of focus following the
FY 2022/23 effectiveness review. The results were evaluatedand discussed at the March Board meeting, following which theBoard confirmed its view that the Board continues to operate
effectively within an inclusive and transparent environment.

The review also identified certain areas for development andaction which have been agreed by the Board and are set out
below. Progress against these areas of focus will be monitored
during the year.
The evaluation process also concluded that the Audit,
Nomination and Remuneration committees continue to operate
well and to provide effective support to the Board in carryingout its duties. Further information about the effectivenessevaluations of each of the Committees and of individual
Directors conducted during the year can be found on pages
115, 118, and 127.
Separate to the formal Board effectiveness review process, theSenior Independent Director held a meeting of the Non-Executive
Directors, without the Chair being present, to review his
performance during the year. The unanimous view is that Gerry
Murphy continues to be highly effective and has continued toprovide strong leadership throughout FY 2023/24.

Areas of focus for FY 2024/25
Based on the feedback received during the assessment process, the Board agreed on the following areas of focus, which will bemonitored during the year.

Area for development

ActionStrategy and operations

The Board and management team will work together to refine the key strategic priorities anddetermine a definitive plan and timetable for their implementation. Clear operational milestones
and KPIs will be agreed in order to measure progress and enable effective oversight ofstrategy implementation.
Develop a clear action plan to deliver growth in Burberry’s e-commerce business together withkey metrics which enable progress to be measured.

People and resources

Ensure the organisation structure, roles, responsibility and accountability are clear andconfigured to support strategy execution.
Ongoing focus on the talent agenda including leadership team succession and development.
The Board will also welcome opportunities for Non-Executive Directors to engage withmanagement on a more informal basis.

Board ways of working

Revisit Board agendas and papers to ensure sufficient focus on key strategic pillars and areas
where Board input will help drive the business forward.

111

Burberry Annual Report 2023/24

Corporate Governance Statement | Composition, Succession and Evaluation

Progress update on focus areas identified following FY 2022/23 Board effectiveness review
Area for development

ActionStrategy, purpose and values• Ongoing development of Board agendas
to ensure sufficient focus on big trends
including sustainability, e-commerceand globalisation

The Board receives regular scheduled updates on Sustainability ande-commerce performance has been discussed in the CEO report for eachmeeting in FY 2023/24 to date.
In addition, the agenda for annual strategy meetings in October 2023 included
updates on raw material innovation and e-commerce strategy. The Board also
had the opportunity to discuss consumer and technology trends with a panelof industry experts. Topics included market dynamics in the luxury industry,changing consumer expectations and the implications for Burberry.

• Consider ways to develop the Board’s
understanding of the opportunities andrisks presented by emerging technology
in the luxury industry

In October 2023, the Board received an update on the latest developments
for GenAI and its applications for the fashion industry.

People and culture• Continued focus on developing thelong-term approach to executive
succession planning including increased
opportunities for Board members toengage with colleagues informally

As part of the succession planning process, a programme has been developed tobring Board members close to high potential and key talent across the business.
As part of this, individual Board members were connected with colleagues withwhom there was a natural fit in terms of skills and expertise.
Board members are also encouraged to meet those colleagues identified as key
talent when travelling around the business.

• Enhance the Board’s oversight of culture
and values, including how well they areembedded across the businessSee page 103 for information on the Board’s oversight of culture.
The Board attended a Purpose workshop to discuss bringing together Burberry’s
strategy, culture and sustainability ambitions. In November 2023, the Board
received an update following the annual Employee Engagement Survey covering
insights and areas of company-wide focus in response to the feedback received.

Board composition• Review the size and composition of
the Board including the potential useof advisory support to supplement coreskills of Board members where necessary

112

In September 2023, the Board appointed Alessandra Cozzani to enhance
the luxury and finance expertise on the Board.
A full review of Board composition and succession planning was undertaken
as part of the external Board performance review for FY 2023/24. Further
information is on page 113.

Burberry Annual Report 2023/24

Corporate Governance Statement | Report of the Nomination Committee

REPORT OF THE
NOMINATION COMMITTEE“The Committee
operates effectively
and has taken arigorous approachto Board succession
and recruitment
throughout the year”

Areas of focus for FY 2023/24• Board composition• Recruitment of new Non‑Executive Director• Talent and executive succession planning• Annual review of corporate governancerequirements

Gerry Murphy
Chair, Nomination Committee

Dear Shareholder,
On behalf of the Nomination Committee, I am pleased topresent this report which describes how we carried out our
responsibilities during the year.
Board succession planning and composition continues to be an
important area of focus for the Committee. During FY 2023/24,
the Committee recommended the appointment of Alessandra
Cozzani as an additional independent Non-Executive Director.
Matthew Key retired from the Board in July 2023 and, having
announced Kate Ferry’s appointment in March 2023, the Board
also welcomed Kate Ferry who joined the Board as Chief Financial
Officer in July. In our consideration of Board composition, weconcentrated on identifying candidates who would add to theBoard’s collective skills, experience and diversity. Our aim isto ensure the Board is capable of supporting and challenging
management in the execution of Burberry’s strategy and topromote Burberry’s long-term growth.
During the financial year, we reviewed the talent pipeline for
the Executive Committee and other senior management roles.
We also completed our annual governance processes.
As announced on 12 April 2024, Debra Lee, Independent
Non-Executive Director, will retire from the Board with effectfrom the conclusion of the Company’s Annual General Meetingon 16 July 2024.

In July 2023, the Committee recommended the appointmentof Danuta Gray as a member of the Audit Committee andAlan Stewart was appointed as a member of the Remuneration
Committee on the same day.
The Nomination Committee has performed its annual review
of Directors’ time commitments and independence on behalfof the Board. Further information is included within thisreport on pages 114 to 115 including the steps we have taken tounderstand the views of shareholders who voted against there-election of Antoine de Saint-Affrique at the 2023 AGM, theintroduction of a new policy on Directors’ time commitments andthe rigorous assessment of Fabiola Arredondo’s independence
in light of the fact that she has now served on the Board for justover nine years.

Committee Effectiveness
The Committee’s annual performance and effectiveness review
was undertaken as part of the externally facilitated Board
effectiveness review. The review confirmed that the Committee
operates effectively and has taken a rigorous approachto board succession and recruitment throughout the year.
Further information on the review process is set out on page 111.

Gerry Murphy
Chair, Nomination Committee

Board and Committee composition
The Committee is responsible for keeping the structure, sizeand composition of the Board and its Committees under review.
During FY 2023/24, the Committee oversaw the search andappointment of Alessandra Cozzani as a Non-Executive Director
and member of the Audit and Nomination Committees on
1 September 2023. Alessandra is a highly experienced Chief
Financial Officer with a profound understanding of luxury
fashion and we are delighted that she has joined the Burberry
Board. More information on the appointment and search
process can be found on page 186.

113

Burberry Annual Report 2023/24

Corporate Governance Statement | Report of the Nomination Committee

Nomination Committee membership and meeting attendance during the year
Committee member

Member since

Gerry Murphy (Chair)

17 May 2018

Meeting attendance

2/2

Fabiola Arredondo

10 March 2015

2/2

Alessandra Cozzani1

1 September 2023

1/1

Sam Fischer

1 November 2019

2/2

Ron Frasch

1 September 2017

2/2

Danuta Gray

1 December 2021

2/2

Matthew Key2

26 September 2013

1/1

Debra Lee

1 October 20192/2

Orna NíChionna

3 January 2018

2/2

Antoine de Saint-Affrique

1 January 2021

2/2

Alan Stewart

1 September 2022

2/2

1. Alessandra Cozzani joined the Committee on 1 September 2023 on her appointment as a Non-Executive Director.
2. Matthew Key resigned from the Committee on 12 July 2023 on his resignation from the Board.

Principal role and responsibilities
As set out in the terms of reference, which are available on the
Company’s website, Burberryplc.com, the Nomination Committee
is responsible for a number of areas across three main categories
as listed below. The Committee reviews its terms of reference
annually to ensure they remain fit for purpose.

Board composition• Reviewing the structure, size and composition of the Boardand its Committees to maintain the relevant balance of skills,
knowledge, experience, diversity and independence• Identifying and making recommendations to the Boardon suitable candidates to fill Board vacancies

Board and executive succession planning• Developing succession plans to ensure Board membershipis refreshed to meet the needs of the Company• Overseeing the development of a diverse succession pipeline
for the Executive Committee and other key senior management
roles, in line with the talent management framework

Corporate governance• Considering the independence and time commitmentsof Non-Executive Directors• Making recommendations to the Board on election andre-election of Directors at the AGM• Reviewing the Board Composition and Diversity Principles
to ensure they remain fit for purpose
Our proactive approach to succession planning ensures that theBoard maintains the right mix of skills, experience, knowledge
and tenure to effectively support and challenge. We believe thatdiverse boards with appropriate competencies and values are
better boards. In line with the Board Composition and Diversity
Principles, all new Board appointments will continue to bemade on merit and objective criteria. Our approach includes:• Ensuring the search pool includes candidates from diverse
backgrounds with experience and insights relevant to theGroup’s strategic priorities.

114• Taking into account Burberry’s purpose, culture and values,
as well as changing business needs, while also having regard
to wider stakeholder requirements and environmental factors• Promoting diversity, inclusion and equal opportunity. Our aim
is to ensure that at least 40% of the Board is female
Following appointments made during FY 2023/24, there is agood balance between recently appointed Directors and those
who have served for longer periods on Burberry’s Board.

Directors’ time commitments
The Nomination Committee conducts an annual review of thetime required by Non-Executive Directors to fulfil their duties.
It also assesses through performance evaluation if the time they
spend executing their roles is adequate.

Policy on Directors’ time commitments
During the year, the Committee introduced a policy on
Directors’ time commitments. It stipulates that Non-Executive
Directors will be expected to hold no more than four nonexecutive directorships in public companies, including Burberry,at any one time. Executive Directors should not undertake morethan one non-executive directorship of a FTSE 100 company or
any other significant appointment. The Board may exceptionallyapprove non-compliance with this policy where compellingand exceptional circumstances exist and the Board agrees thisis merited in order for the Board to benefit from the individual
Director’s continuing appointment.
Directors are required to seek prior approval before taking
on any significant additional appointments and the Chair
undertakes this pre-approval on behalf of the Board. Specificappointments may be brought to the full Board if the Chairconsiders it necessary to do so. See page 110 for further
information on additional appointments during FY 2023/24.
The terms of appointment of the Non-Executive Directors
require that they should allocate sufficient time to meet the
expectations of their role. The Committee considered the
expected time commitment of the Chair and the Non-Executive
Directors, taking into account attendance at Board and Committee
meetings, as well as engagements outside of formally scheduled
Board and Committee meetings, and considered whether theBurberry Annual Report 2023/24

Non-Executive Directors had met the requirement. The Committee
also considered the external appointments of the Non-Executive
Directors and reviewed the register of Directors’ conflicts.
The Board is satisfied that all Directors continue to makeeffective and valuable contributions to the Board and continue
to devote sufficient time to discharging their responsibilities
as directors of Burberry.

Update on Antoine de Saint-Affrique’stime commitment
At Burberry’s AGM in 2023, as in the prior year, someshareholders expressed concerns about the number of Antoine
de Saint-Affrique’s other listed directorships and the potential
impact on his time commitment to Burberry. We have contacted
major shareholders who voted against Antoine’s re-election
to understand their views. The Chair of the Board has had
discussions with certain shareholders and explained that Antoine
has brought, and continues to bring, considerable businessand management experience and exceptional knowledge ofsustainability and global consumer markets to Board discussions.
The Chair reviews each Non-Executive Director’s effectivenesseach year and, when considering Antoine’s performance,
specifically considered his ability to carry out his duties as a
Director given his other directorships. As reported on page 111,
an externally facilitated review of the Board’s performance took
place in FY 2023/24 and no concerns regarding Antoine’s ability
to devote time to his role at Burberry were raised.
Antoine’s attendance record has been exemplary: in FY 2022/23
and FY 2023/24, he attended 100% of the Board and Committee
meetings. He also attended the AGM and additional Board
calls and meetings during the year when required. In addition,
Antoine has participated in a number of additional opportunities
to meet colleagues and engage with other stakeholders
throughout the year. The Board considers that Antoine’s
attendance record further demonstrates his capacity to fulfil
his obligations in each of his roles, even during exceptionallydemanding periods.
Antoine has spent his working life in large international
companies with globally renowned consumer brands. He is aworld-class Director and his wealth of knowledge and experiencewould be hard to replace. Burberry’s experience of Antoine asa committed and engaged Director has been very positive, notleast in the areas of executive and global brand management,sustainability and deep operational experience in our key
markets in Asia, Europe and North America.
In summary, the Board continues to believe that Antoine has
the capacity to devote sufficient time to effectively discharge
his duties. He is a committed and engaged Director whoseskills and experience enable him to bring a particularly
valuable perspective to Board matters and he has consistently
demonstrated his ability to fulfil his obligations as a Director,
including during exceptionally demanding periods. As an
executive of the highest calibre, we feel it would not be in thebest interests of the Company to deprive Burberry of Antoine’s
services. The Board will continue to monitor this position closely
and, should circumstances change, the Chair would takeappropriate action.

Directors’ independence
The Committee conducts an annual review of the independenceof the Non-Executive Directors on behalf of the Board. The UK
Corporate Governance Code requires the Board to state its
reasons for concluding that a Director is independent
notwithstanding the existence of certain circumstances
which are likely to impair or appear to impair that Director’s
independence. Provision 10 of the Code provides a non‑exhaustive
list of such circumstances which should be considered,including length of service.
As part of its annual review of the independence of the
Non-Executive Directors, the Committee paid particular regard
to the independence of Fabiola Arredondo who was appointed
to the Board on 15 March 2015 and has therefore served asa Director for just over nine years. When evaluating Fabiola’s
independence, the Committee assessed the degree ofobjective judgement and challenge she demonstrated during
meetings. It concluded that she continues to make high-quality
contributions to the Board and in Committee meetings, providing
effective and constructive challenge to management, anddemonstrating objective and independent judgement. On thebasis of its rigorous assessment, the Committee determinedthat Fabiola remains independent. The Committee also
considered the skills and experience that Fabiola brings to theBoard and determined that her continued presence on the Board
is in the best interests of the Company at this time.
All Directors, with the exception of Debra Lee, will seek election
or re-election at the 2024 AGM.

Board and Committee effectivenessAs part of the annual Board evaluation, all members of theNomination Committee participated in an evaluation of theCommittee’s performance. The evaluation concluded that theCommittee operates well and continues to provide effective
support to the Board. Further details of the evaluation canbe found on pages 179 to 181.

Senior management talent andsuccession planning
The Committee monitored changes to the talent landscapeduring the year and reviewed the talent pipelines for the
Executive Committee and other key leadership roles. Whenconsidering the succession plans, the Committee reviewed
progress in increasing diversity of gender and ethnicity,
considered the core capabilities required to deliver the Group’s
strategic priorities and agreed plans to provide opportunities
for Board members to meet key senior executives in orderto deepen relationships and support engagement.
During FY 2023/24, the CEO provided regular updates tothe Board and Board Committees to keep them informedof changes to senior leadership and the composition of the
Executive Committee. The Committee supports the CEO inhiring the right talent to strengthen brand capabilities anddrive business growth.

The Board, through the Nomination Committee, has therefore
determined that Antoine has sufficient time to meet his Board
responsibilities as required by Principle H of the UK Corporate
Governance Code and has decided to make an exception
to the number of roles which can be held by Non-Executive
Directors set out in the policy on Directors’ Time Commitments.
This position will be kept under review and will be assessedand confirmed each year.

115

Burberry Annual Report 2023/24

Corporate Governance Statement | Report of the Nomination Committee

Board changes

Alessandra Cozzani’s induction

The composition of the Board and its Committees continued
to be a key area of focus for the Committee during FY 2023/24.
Through the appointment of Alessandra Cozzani as a NonExecutive Director in September 2023, the Board has added
deep insight into luxury fashion as well as strengthening its
knowledge and experience of operational finance.

Following her appointment in September 2023, Alessandra
undertook induction sessions to provide her with an understandingof Burberry’s business with special focus on purpose andvalues, strategy and wider business objectives. The Company
Secretary assisted the Chair with the preparation and delivery
of a tailored and comprehensive induction programme, designed
to give Alessandra the opportunity to familiarise herself withthe business and build an understanding of key areas of focus
for the Board and the Group. Alessandra had meetings withindividual Board members, including the Senior Independent
Director and the Chair of the Audit Committee and meetings
with Company advisors. The induction programme was also
complemented by the Board’s extended strategy sessions,which took place shortly after Alessandra’s appointment andincluded in-depth presentations on aspects of the business.

Non-Executive Director appointment
To assist with the recruitment of a new Non-Executive Director,
the Committee appointed search firm Egon Zehnder which
has no connection to the Company or individual Directors.
A candidate profile was developed in line with the Board
Composition and Diversity Principles, which would complement
the needs of the business and the Board as a whole. Egon
Zehnder was engaged by the Company during FY 2023/24
to provide some additional HR services.
Having considered the shortlist, Committee members
interviewed the preferred candidates and recommended theappointment of Alessandra Cozzani to the Board for approval.
The Committee further recommended that, on appointment to
the Board, she be appointed as a member of the Audit andNomination Committees.
The appointment involved a formal, rigorous and transparent
selection process based on merit and objective criteria, withdue consideration being given to a broad range of factors, suchas diversity of gender, social and ethnic backgrounds, cognitiveand personal strengths and the Group’s future strategic direction.
The majority of Board members met Alessandra during theselection process.

A review of Kate Ferry’s induction
Following the appointment of Kate Ferry in July 2023,
a detailed induction plan was created for Kate focusedon building her understanding of our purpose andvalues and providing opportunities for productimmersion, meeting colleagues and travelling to
Burberry stores and manufacturing sites around theworld to meet and connect with the wider workforce.
The induction sessions gave Kate the opportunity to
get to know the business and build an understandingof the key areas of focus for the Board and the Group.
The induction programme was complemented bymeetings with key external stakeholders, enabling
Kate to further deepen her business insights.
Her induction programme included:• Product immersion• Visiting key stores and manufacturing sites• Meeting with the Executive Committee, Regional
leads, Vice Presidents and the leadership team toestablish connections, raise visibility and deepen
business insights, with a view to identifying
priorities in relation to financing the businessand financial performance• Meeting with external stakeholders to further
deepen business insights• Meeting with the external auditor and intensefamiliarisation with Burberry finance processes,
internal controls and auditing and accounting
policies and procedures

116

Board diversity
Burberry holds diversity, equity and inclusion at the core of
our people strategy and our culture. The Committee considers
the importance of diversity when recommending candidates
for appointment to the Board. In accordance with the Board
Composition and Diversity Principles, we are committed toensuring women make up at least 40% of our Board and that atleast one Board member is from an ethnic minority background,while continuing to ensure candidates are selected basedon their merit and wide-ranging experience, background,knowledge, insights and skills. With the current Board
composition, these objectives have been exceeded.
As required by the Listing Rules, Burberry has reported on thediversity targets introduced by the Financial Conduct Authority
in 2022 (see the table on page 117). We first reported thesetargets in our Annual Report 2022/23. We are delighted to havebeen recognised as being a top performer in the FTSE Women
Leaders report, having again exceeded its recommendations.
At the date of their report, women accounted for 50% of Board
members and 55% of Executive Committee members and theirdirect reports. We are also pleased to have exceeded the Parker
Review Committee’s target for all FTSE 100 boards to have atleast one director from an ethnic minority background. During
the year, the Board approved a new target to have 15% of senior
management in the UK to come from ethnic minority
backgrounds by December 2027.

Diversified Board
Gender
6

Women

6

Men

Tenure60 – 3 years

3 – 6 years

42

6+ yearsNationality
1

1

1

2

3

Australian

FrenchItalian

Irish

AmericanBritish4

Burberry Annual Report 2023/24

Board skills

Operational excellence

We recognise that having the right individuals in the boardroom
is critical. Directors need to have skills and experience thatalign with the Company’s long-term strategy. Diverse and fresh
perspectives are also important, which is why the Committee
makes refreshment and succession planning a priority. A Board
skills matrix is used to identify current and expected skill gaps.
In addition, the identification of skills gaps on the Board was
informed by the output from the externally facilitated Board
effectiveness review reported in more detail on page 111.

83%
Luxury brands
58%
Digital and media
25%
Environment / sustainability
41%
Retail, sales and marketing
100%
Financial expertise
25%

Disclosures required under Listing Rule 9.8.6 as at 30 March 2024
The Financial Conduct Authority introduced a new Listing Rule on diversity and inclusion disclosures applying to financial periods
commencing on or after 1 April 2022. As at 30 March 2024 (being the reference date selected by the Board for the purposesof this disclosure), the Company complied with the regulatory targets set out in Listing Rule 9.8.6 R (9), as women made up 50.0%of the Board, both the Senior Independent Director and the CFO were women, and the Board had two Directors from an ethnic
minority background.
We have provided this information in the reporting tables for the Board and Executive Committee below.

Reporting on gender identity or sex
Number of
Board members

Percentage of
the Board

Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)

Men

6

50.0

2

8

72.7

Women

6

50.0

2

3

27.3

Not specified/prefer not to say

–

–

–

–

–

Number of
Board members

Percentage of
the Board

Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)

Numberin executive
management

Percentageof executive
management

White British or other White (including minority-whitegroups)

10

83.4

3

9

81.8

Mixed/Multiple Ethnic Groups

–

–

–

–

–

Asian/Asian British

1

8.3

1

1

9.1

Black/African/Caribbean/Black British

1

8.3

–

–

–

Other ethnic group, including Arab

–

–

–

1

9.1

Not specified/prefer not to say

–

–

–

–

–

Numberin executive
management

Percentageof executive
management

Reporting on ethnic backgroundThe data was collected by asking each member of the Board and Executive Committee to indicate their gender and ethnicity
according to the categories presented in the table.

117

Burberry Annual Report 2023/24

Corporate Governance Statement | Audit, Risk and Internal Control

REPORT OF THE
AUDIT COMMITTEE“The Committee
fulfils its purpose,is well informed andchallenges whereappropriate.”

Areas of focus for FY 2023/24• Cybersecurity• Financial reporting estimates and judgements• Process controls and regulatory changes

Alan Stewart
Chair, Audit Committee

Dear Shareholder,I am pleased to present the FY 2023/24 report of the Audit
Committee. The purpose of this report is to describe how theCommittee carried out its responsibilities during the year.

Composition
There have been a number of changes to Committee
membership during the year. Matthew Key stepped down as
Chair of the Committee following his retirement from the Board
on 12 July 2023. I succeeded Matthew Key as Chair of theCommittee on the same day. Matthew chaired the Committee
for three years and I would like to take this opportunity to thankhim for his leadership of the Committee during this time. Danuta
Gray was appointed as a member of the Committee on 12 July
2023, and Alessandra Cozzani joined the Committee on her
appointment to the Board on 1 September 2023. All of theCommittee members have the appropriate knowledge, skills
and experience to fulfil the duties delegated to the Committee.

Areas of focus for FY 2023/24
The primary role of the Audit Committee is to monitor andreview the integrity of financial information and to provide
assurance to the Board that the Group’s internal controls
and risk management processes are appropriate and regularly
reviewed. We also oversee the work of the external auditor,
approve its remuneration and recommend its appointment.
Details of how the Audit Committee has monitored EY’s
audit are available on page 122. In addition to the disclosure
requirements relating to audit committees under the Code, thisreport sets out areas of particular focus for the Committee.
This year, we have focused on reviewing accounting judgements
relating to inventory provisioning and store impairments andmanagement’s assessment of uncertain tax positions.
The Committee reviewed and challenged management’s approach,analysis and recommendations, taking into account input fromthe external auditor, in order to assess the appropriateness ofthe treatment in the Financial Statements. All matters reviewed
were concluded to the satisfaction of the Committee.
Further information on how the Audit Committee addressedsignificant matters during the year is set out in the tableon pages 120 and 121.

118

In relation to the Group’s risk management, we carried out adetailed review of management’s assessment of principal risks,tolerance levels and mitigations, and concluded these wereappropriate. We reviewed management’s preparations for the
new CSRD regulations, and concluded the approach wasappropriate. We also considered the risks associated withcybersecurity, including ransomware, and reviewed the revised
supply chain risk profile.
The Committee confirms that during FY 2023/24, the Group
complied with the mandatory audit processes and Audit
Committee responsibility provisions of the Competition
and Markets Authority Statutory Audit Services Order 2014.
This report describes the work of the Committee in discharging
its responsibilities.

Committee Effectiveness
The Committee’s annual effectiveness review was undertaken
as part of the externally facilitated Board effectiveness review,
and I am pleased to note that the review confirmed that theCommittee fulfils its purpose well, is well informed, andchallenges where appropriate. Further information on theprocess is set out on page 111.
The Committee has an open and constructive relationship withmanagement. I thank the management team on behalf of theCommittee for its assistance during the year. I am confident
that the Committee has carried out its duties effectively andto a high standard during the year.

Alan Stewart
Chair, Audit Committee

Burberry Annual Report 2023/24

Audit Committee membership and meeting attendance during the year
Committee member

Member since

Alan Stewart (Chair)

1 September 2022

Meeting attendance

Alessandra Cozzani

1 September 2023

3/3

Ron Frasch

7 November 2018

4/4

Danuta Gray

12 July 2023

3/3

Matthew Key1

26 September 2013

1/1

Debra Lee2

1 October 2019

3/4

Antoine de Saint-Affrique

1 January 2021

4/4

4/4

1. Matthew Key retired from the Board on 12 July 2023, and stepped down as Chair of the Audit Committee on that date.
2. Debra Lee was unable to attend one Audit Committee meeting due to a prior business commitment.

The role and main responsibilitiesof the Committee
The main role and responsibilities of the Committee are set
out in written terms of reference, which are available on the
Company’s website, Burberryplc.com. As part of the Committee’s
annual review of its terms of reference, the Committee took into
consideration the requirements of the FRC’s ‘Audit Committees
and the External Audit: Minimum Standard’ (the MinimumStandard) and determined that the key requirements of the
Minimum Standard are already being met. We will continue tokeep the requirements of the Minimum Standard under review.
In light of its key responsibilities, the Committee considered
the following items of business during the financial year:• Financial reports: the integrity of the Group’s Financial
Statements and formal announcements of theGroup’s performance• Accounting policies: the Committee reviewed and approved
management’s identification and determination of key
accounting judgements• Risk and internal controls: the Group’s internal financial,
operational and compliance controls and risk identificationand management processes. Review of Group policies
for identifying and assessing risks and arrangements
for employees to raise concerns (in confidence) about
possible improprieties• Cyber security: the Committee received an update on cybersecurity strategy and the outcomes of a cyber attack simulation
exercise undertaken by management• Viability: consideration of management’s assumptions anddisclosures relating to the Group’s Viability Statement as set
out on pages 91 to 92• Internal Audit: review of the annual Internal Audit programme
and the consideration of findings of any internal investigations
and management’s response• Process controls and efficiency: the Committee received
reports from management on design and product development
transition risks and controls. The Committee also received
updates from management on emerging regulatory
developments, including the key changes to the Board’s
responsibilities for systems of risk management and internal
control under the 2024 Corporate Governance Code• Treasury matters: including reviewing proposed amendments
to the Treasury Policy, including the core cash policy• External auditor: recommending the appointment of the external
auditor, approving their remuneration and overseeing their work.
Reviewing reports received from the external auditor. Reviewing
the effectiveness and independence of the external auditor• Ethics update: the Committee received and consideredreports from management on the considerations of the Ethics
Committee, including the Group’s whistle blowing
arrangements and health and safety• Legal and Brand Protection update: the Committee received
and considered reports from management on current andemerging risks in the fields of Legal, Brand Protection andAsset Profit and Protection, and the actions being taken,
or proposed, to mitigate such risks• Sustainability Reporting: the Committee reviewed therequirements of the TCFD and the progress made in relation
to the climate-related risk scenario analysis undertaken
in FY 2023/24 to assess the impact of climate-related risks
on Burberry. The Committee also received an updateon preparations for new CSRD regulations• Group Tax Strategy: the Committee reviewed the Tax strategy
in the context of an evolving regulatory environment and
the Group’s uncertain tax positions. The tax governanceframework can be found on page 106

Meetings and attendance
The Committee met formally four times during the year (seethe table above). Where members were unable to attend, they
provided feedback to the Chair on the matters to be discussed
in advance of the meetings.
The Chair of the Committee met separately with representativesof the external auditor, senior members of the Finance function
and the Senior Vice President, Internal Audit and Risk on a regularbasis, including prior to each Committee meeting. In addition,
he met with members of the Group Internal Audit team and othermembers of management on an ad hoc basis as required tofulfil his duties.
Regular attendees at Committee meetings included: the Chair of
the Board; CEO; CFO; Company Secretary; Senior Vice President,Internal Audit and Risk; Senior Vice President, Group andCorporate Finance; Vice President, Group Financial Controller;
General Counsel; and representatives of the external auditor.
At the end of each meeting, the Committee held closed meetings
with the external auditor and with the Senior Vice President,Internal Audit and Risk, without management being present.
The Board is satisfied that Alan Stewart and Alessandra Cozzani
have recent and relevant financial experience, and that allother Committee members have past employment experiencein either finance or accounting roles, or broad consumer
experience and knowledge of financial reporting and/orinternational businesses. As a whole, the Board is satisfied that
the Audit Committee has competence relevant to the businesssector. The biographies set out on pages 95 to 99 provide
details of each member’s background and experience.
119Burberry Annual Report 2023/24

Corporate Governance Statement | Audit, Risk and Internal Control

Significant mattersfor the year ended
30 March 2024

How the Audit Committee addressed these matters

Impairment assessmentof right of use assets
and property, plant andequipment held in retailcash generating units

In November, March and May, the Committee considered management’s assessment of therecoverability of the carrying value of assets held in retail cash generating units, including
property, plant and equipment and right-of-use assets relating to store leases. The Committee
considered the approach applied by management to review for potential indicators of impairmentof retail cash generating units and how current performance has impacted this. The Committee
reviewed and challenged the sensitivities applied to the estimates of future store performanceand reviewed management’s proposed disclosures relating to these uncertainties. The Committee
concluded that the carrying value of assets held in retail cash generating units and disclosurescontained in the Financial Statements for the period were appropriate.
The results of the impairment assessment of assets held in retail cash generating units, together
with related sensitivities, are set out in note 13 of the Financial Statements.

The appropriatenessof the valuation of therecoverability of the costof inventory and theresulting estimationof provision required

In November, March and May, the Committee considered management’s assessment of therecoverability of the cost of inventory and the resulting amount of provisioning required.
The Committee reviewed the Group’s current provisioning policy, the expected loss rates
on inventory held at the balance sheet date and the nature and condition of current inventory.
The review included analysis of actual inventory, noting the age and expected exit routes for theremaining surplus inventory held at the balance sheet date and the actual loss rates experienced.
The Committee considered the sensitivity to the assumptions of loss rate and exit route and how
this aligned to the current performance of the business to understand how management
quantified the range of potential outcomes and level of estimation applied. The Committee
concluded that the inventory assets recognised and disclosures contained in the Financial
Statements for the period were appropriate. Movements in inventory provisioning and the relatedsensitivities are set out in note 17 of the Financial Statements.

Uncertain tax positions
and the Group’s moresignificant tax exposuresand the appropriatenessof any related provisions
and financial statement
disclosures

The Committee received regular updates of developments relating to discussions with tax
authorities and the status of any ongoing tax audits. The Committee reviewed and challenged
the appropriateness of assumptions and estimates applied to estimate the amount of assets andliabilities to be recognised in relation to uncertain income tax and deferred tax positions and thedisclosure of any significant estimates applied to tax balances. The Committee also discussed
matters with external advisors, where significant estimation was required. The Committee
concluded that the assets and liabilities recognised and disclosures contained in the Financial
Statements for the period were appropriate. Details of movements in tax balances are set out
in notes 9 and 15 of the Financial Statements and further disclosure of tax contingent liabilities
is given in note 32.

Going Concern andViability

The Committee considered the going concern and viability analysis carried out by management.
The Committee considered the risks that could threaten the Group’s business model, future
performance, solvency, liquidity and reputation and how these were included in the severe but
plausible downside scenario which included an aggregation of several severe impacts of theseprincipal risks and the reverse stress test scenario alongside the current cash position, facilities
available to the Group and mitigating actions that could be taken. The Committee concluded thata robust assessment had been carried out and, in all the scenarios considered, the Group wasable to maintain sufficient liquidity to continue trading.

The impact of climate riskon the Group’s financial
reporting and financial
statements (TCFD)

The Committee considered the impact of climate risk on the financial statements and the TCFD
reporting on behalf of the Board. The Committee considered the approach taken by management
to further develop the digital twin model that had been updated with the latest Group
performance and locations.
The Committee noted the ongoing areas of market and consumer preference risk and physicalrisks as being the most significant risks identified by the modelling. The Committee also noted
the ongoing increase in visibility of climate risk in the wider organisation and reviewed the
preparation for CSRD reporting that management have progressed in the year.
The Committee reviewed the disclosures in the Annual Report on behalf of the Board to ensurethat they were in compliance with the TCFD recommendations, and the assurance provided
by the Group’s auditors.

120

Burberry Annual Report 2023/24

Significant mattersfor the year ended
30 March 2024

How the Audit Committee addressed these matters

Whether the Annual Reportis fair, balanced andunderstandable

The Committee considered the Annual Report and Interim Report, on behalf of the Board, toensure that they were fair, balanced and understandable, in accordance with the requirementsof the UK Corporate Governance Code. The Committee reviewed the report from the Strategic
Report drafting team, comments arising from the review of the Financial Statements by senior
management and comments raised by the Group’s auditors.
The Committee also considered the use of alternative performance measures by the Group andconcluded that there is an appropriate balance between statutory and alternative performancemeasures ensuring equal prominence.
The Committee concluded that the Annual Report, taken as a whole, is fair, balanced andunderstandable and provides the information necessary to assess the Group’s performance,business model and strategy.

Other matters

During the year, the Committee also considered management’s papers on other subjects,
including the carrying value of goodwill and associated disclosures and significant judgements
relating to lease term where a judgement is taken on the likelihood of exercising options within
leases and impairment of receivables.

121

Burberry Annual Report 2023/24

Corporate Governance Statement | Audit, Risk and Internal Control

External auditor

Non-audit services

EY commenced their first year of audit in FY 2020/21 following
a competitive tender process. The current audit partner is
Michael Rudberg who has held the role since EY were appointed
as external auditor. The external audit contract will be put out
to tender at least every ten years as required by regulation.
The next tender will be in respect of FY 2030/31 at the latest,
and the process will be led by the Committee.

The Committee recognises that the independence of theexternal auditor is an essential part of the audit framework andthe assurance that it provides. The Committee has adopted apolicy which sets out a framework for determining whether it isappropriate to engage the Group’s auditor for non-audit services
and pre-approving non-audit fees. This policy was updated
during FY 2023/24 to reflect the Revised Ethical Standard
issued by the FRC in January 2024 which takes into accountrecent revisions made to the International Ethics Standards
Board for Accountants’ Code of Ethics which helps ensure highstandards of independence and ethical behaviour are appliedconsistently by UK audit firms and their networks.

The Audit Committee oversees and assesses the work
undertaken by EY, and in FY 2023/24 the Committee monitored
and reviewed activities including:• The audit plan, including strategy, scope and materiality• The approach to risk assessment, including in relation toclimate-related risks• The approach to auditing controls, the use of data
analytics and how the auditor demonstrated robust
professional scepticism• The limited assurance work carried out on the TCFD disclosures,
which is a separate non-audit service provided by EY• Reports at the half year and full year
During the year, the Committee met with the auditor without
members of management being present.

Independence and effectivenessOne of the Committee’s primary responsibilities is to makea recommendation on the appointment, reappointment andremoval of the external auditor. Each year, the Committee
assesses the qualifications, expertise, resources andindependence of the external auditor and the effectivenessof the previous audit process. Over the course of the year,
the Committee reviewed the audit process and the quality
and experience of the audit partners engaged in the audit tosatisfy itself that it received the highest quality audit possible.
To support this assessment, a survey was sent to the Audit
Committee Chair, key members of the Finance team andother members of the senior management team as part of
the year-end process. The Committee considered the resultsof the survey and concluded that the external audit
process was effective.
The Committee’s recommendation on the appointment andreappointment of the external auditor is free from influence
by a third party and there are no contractual obligations, which
restrict the Committee’s ability to make such a recommendation.
The Committee also reviewed the proposed audit fee and termsof engagement for FY 2023/24. Details of the fees paid to theexternal auditor during FY 2023/24 can be found in note 7 to the
Financial Statements.

The overall objective of the policy is to ensure that theprovision of non-audit services does not impair the external
auditor’s independence or objectivity. This includes, but is not
limited to, assessing:• Any threats to independence and objectivity resulting fromthe provision of such services; any safeguards in place toeliminate or reduce these threats to a level where they would
not compromise the auditor’s independence and objectivity;
the nature of the non-audit services; and whether the skills
and experience of the audit firm make it the most suitablesupplier of the non-audit service• The value of non-audit services that can be billed by theexternal auditor is restricted by a cap, which is set at 70%of the average audit fees for the preceding three years as
defined by the FRC
During FY 2023/24 the non-audit services provided by Burberry’s
external auditor did not exceed this cap.
Proposed fees above £100,000 are approved by the Chairof the Audit Committee. Non-audit services with a value below£100,000 and which are in line with the Group’s policy havebeen pre-approved by the Audit Committee. Compliance withthe policy of engaging the Group’s auditor for non-audit services
and pre-approving non-audit fees is reviewed and monitoredby the Senior Vice President, Internal Audit and Risk. These fees
must be activity based and not success related. At the half-year
and year-end, the Audit Committee reviews all non-audit services
provided by the auditor during the period, and the fees relating
to these services.
During the year, the Group spent £0.3 million on non-audit
services provided by EY (9.7% of the average of Group audit
fees incurred over the last three years).
The rationale for using the external auditor to perform these
services was that EY was best able to provide the services werequire at a reasonable fee and within the terms of our policy.
No advisory services were provided by EY during FY 2023/24.
Where EY was selected to provide non-audit related services,
EY’s existing knowledge and experience of the Group weretaken into account. Significant non-audit work performedby EY during FY 2023/24 included:• Review of the half-year financial statements; and• Limited assurance over TCFD reporting.
Further details can be found in note 7 to the Financial Statements.

122

Burberry Annual Report 2023/24

Evaluation of internal controls
The Board is responsible for the Group’s internal controls
and risk management procedures. Details of the Group’s risk
management processes and the management and mitigationof each principal risk, together with the Group’s Viability
Statement, can be found in our Risk and Viability Reporton pages 83 to 92.
The Committee discharges its duties in respect of risk
management by:• Determining the nature and extent of the principal andemerging risks it is willing to accept to achieve the Group’s
strategic objectives (the Board’s risk appetite)• Challenging management’s implementation of effective
processes of risk identification, assessment and mitigation
The Audit Committee is responsible for reviewing theeffectiveness of the Group’s internal controls. Ongoing reviewof these controls is provided through internal governanceprocesses and the work of the Group is overseen by management,
particularly the work of the Group Internal Audit team and the
Risk Committee. Regular reports on these activities are provided
to the Audit Committee as reflected in the standing items on
the Audit Committee agenda.
The Board, through the Audit Committee, has conducted arobust assessment of the principal and emerging risks andinternal control framework. It has considered the effectivenessof the internal controls in operation across the Group for theyear covered by the Annual Report and Accounts and up to
the date of its approval by the Board. This review covered thematerial controls, including financial, operational and compliance,
as well as risk management processes. No significant control
weaknesses were identified. The internal controls are designed
to manage rather than eliminate the risk of not achieving
business objectives and can only provide reasonable and not
absolute assurance against material misstatement or loss.
The process followed by the Board, through the Audit
Committee, in regularly reviewing the system of internal
controls and risk management processes complies with the
Guidance on Risk Management, Internal Control and Related
Financial and Business Reporting issued by the FRC. It also
accords with the provisions of the Code.

Control environment
Our business model is based primarily on centralised design,
product development, supply chain and distribution operations
to supply products to global markets via retail, including digital
and wholesale channels. This is reflected in our internal control
framework, which includes centralised direction, resource
allocation, oversight and risk management of the key activities
of marketing, inventory management, as well as brand andtechnology development. We have also established proceduresfor the delegation of authorities to ensure that approval for
matters that are considered significant is provided at an
appropriate level. In addition, we have policies and proceduresin place that are designed to support risk management acrossthe Group. These include policies relating to treasury andthe conduct of employees and third parties with whom we
do business, including prohibiting bribery and corruption.
These authorities, policies and procedures are kept
under regular review.

The Group operates a “three lines of defence” model whichhelps to achieve effective risk management and internal control
across the organisation.
• First line of defence: management owns and manages risk
and is also responsible for implementing corrective actions
to address process and control deficiencies• Second line of defence: to help ensure the first line isproperly designed, established and operating effectively,
management has also established various risk management
and compliance functions to help build and/or monitor the
first line of defence. These include, but are not limited to,functions such as Group Risk Management, Legal, Brand
Protection, Company Secretariat, Group Finance Compliance,
Health and Safety, Data Protection, Asset and Profit
Protection, and Business Continuity• Third line of defence: Group Internal Audit provides the
Audit Committee and management with independent andobjective assurance on the effectiveness of governance,risk management and internal controls. This includes the way
in which the first and second lines of defence achieve risk
management and control objectives

Internal Audit
The Group Internal Audit function is managed by the SeniorVice President, Internal Audit and Risk, who reports to the
CFO but has an independent reporting line to the Chairof the Audit Committee.
The scope of Internal Audit work is considered for each
operating company and Group function. This takes accountof risk assessments, input from senior management and the
Audit Committee, and previous audit findings. For example,
in FY 2023/24, there was continued emphasis on assurance
over controls to manage cybersecurity risk (particularly
ransomware and data exfiltration), and the maturity of controls
over IT projects and operations (including critical third parties).
There was also a continued focus on assessing the maturityof controls over core processes in inventory management,
Finance, Supply Chain, Digital, Legal and HR. Changes to theGroup’s risk profile are considered on an ongoing basis andamendments are made to the internal audit plan as necessaryduring the year. Any proposed changes to the plan are
discussed with the CFO and reported to the Audit Committee.
The effectiveness of Group Internal Audit is assessed every five
years, with the latest review having been reported in FY 2019/20.
Ongoing visibility of the internal control environment isprovided through Internal Audit reports to management andthe Audit Committee. These reports are graded to reflect anoverall assessment of the control environment under review,and the significance of any control weaknesses, including
fraud risk, identified.
Remedial actions to address findings are identified and agreed
with management. The Audit Committee places emphasis on
actions being taken as a result of internal audits, and regular
reports are provided to the Audit Committee on the statusof any overdue actions.

123

Burberry Annual Report 2023/24

Corporate Governance Statement | Audit, Risk and Internal Control

Financial reporting

Fair, balanced and understandable

Management is responsible for establishing and maintaining
adequate internal controls over financial reporting. These aredesigned to provide reasonable assurance regarding thereliability of financial reporting and the preparation of Financial
Statements for external reporting purposes.

As a whole, the Annual Report and Accounts are required to be
fair, balanced and understandable, and to provide the informationnecessary for shareholders to assess the Group’s position,
performance, business model and strategy. On behalf of theBoard, the Audit Committee considered whether the fair,balanced and understandable statement could properly begiven on behalf of the Directors. The processes followed toprovide the Committee with assurance were considered andthe Committee provided a recommendation to the Board thatthe fair, balanced and understandable statement could begiven on behalf of the Directors.

We have comprehensive planning, budgeting, forecasting andmonthly reporting and management review processes in place.
A summary of financial results, supported by commentary andperformance measures, is provided to the Board each month.
In relation to the preparation of Group Financial Statements,
the controls in place include:• A centre of expertise responsible for reviewing new
developments in reporting requirements and standards toensure that these are reflected in Group accounting policies,
Financial Statements and disclosures• A global finance function and governance structure
consisting of colleagues with the appropriate expertise
to ensure that Group policies and procedures are correctly
applied. Effective management and control of the Financefunction is achieved through our finance leadership team,consisting of key finance colleagues from the regions,
Burberry Business Services and our London headquarters
Our financial reporting process is supported by transactionaland consolidation finance systems. Reviews of financial
controls are carried out by senior members of the Financefunction. The results of these reviews are considered by the
Audit Committee as part of its monitoring of the performanceof controls governing financial reporting.
The Audit Committee reviews the application of financial
reporting standards and any significant accounting judgements
made by management. These matters are also discussed withthe external auditor.

124

Based on this recommendation, the Board is satisfied that it has
met this obligation. A summary of the Directors’ responsibilities
in relation to the Financial Statements is set out on page 148.
The Independent Auditor’s Report on pages 149 to 159 includes
a statement concerning the auditor’s reporting responsibilities.

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

DIRECTORS’REMUNERATION REPORT“We remain
confident in ourability to deliver our
strategy and believe
our Remuneration
Policy supports
the business toachieve this.”

Areas of focus for FY 2023/24• Executive reward• Broader employee reward• External environment and shareholder engagement• External reporting
Details of agenda items discussed at each Committee
meeting are set out on page 141.

Danuta Gray
Chair, Remuneration Committee

Dear Shareholder,I am pleased to present to you the Directors’ Remuneration
Report for the year ended 30 March 2024 which has been
approved by both the Remuneration Committee (the Committee)
and the Board.

Directors’ Remuneration Policy review
Last year our renewed Directors’ Remuneration Policy wasapproved by 91% of shareholders at the AGM in July 2023 andI would once again like to thank shareholders for their engagement
and support. I am confident that this Policy continues to support
the delivery of our strategic priorities and provides alignment
with our culture and purpose.

Business context
FY 2023/24 has been a challenging year for Burberry which
has been reflected in our reward outcomes. Our financial results
underperformed our original expectations as we executed ourstrategy against a backdrop of slowing luxury demand. Revenue
was £2.97 billion (flat growth at CER*) and adjusted operating
profit was £418 million (down 25% at CER*). During the year
we have made good progress, refocusing our brand image,evolving our product, strengthening distribution and delivering
operational improvements while continuing to adapt as we learn
from our experience. We remain confident in our ability tosuccessfully navigate this period and deliver our strategy torealise Burberry’s potential as the Modern British Luxury brandand we continue to believe our Directors’ Remuneration Policy
supports the business to achieve this.

Remuneration outcomes for FY 2023/24
Annual bonus for FY 2023/24
The annual bonus for the CEO and the CFO for FY 2023/24 wasbased 75% on adjusted operating profit and 25% on performanceagainst strategic objectives linked to our strategy and brandas well as our environmental and social targets. In addition,
the CFO had strategic objectives in relation to cost strategy.

Our adjusted operating profit of £418 million (£478 million
at CER*) was below the threshold target. As a result, there wasno payout for the profit element.
While we made progress on executing our strategy, deliveringa creative transition during a global slowdown in luxury demandhas been challenging. Revenue performance for all regions
and digital was behind target. However, progress was madein enhancing our brand focus and elevation and we had positive
reactions to key brand events during the year. We also madegood progress during FY 2023/24 against our environmental andsocial targets, including phasing out the use of virgin cashmere
in certain categories and progressing on our responsibly sourced
and certified key raw materials. There was good progresson the CFO’s specific objectives in relation to cost strategy,
including disciplined cost control throughout the business.
The Committee judged that progress was made on refining ourbrand image, evolving our product and strengthening distribution,
resulting in some of the strategic objectives being partially met.
However, in light of the business performance and broader
shareholder experience, the Committee and Jonathan Akeroyd
agreed that it would not be appropriate for him to receive
an annual bonus for FY 2023/24. The Committee determinedthat Kate Ferry would receive an annual bonus for FY 2023/24
of £121,500, representing 9% of her maximum bonus.
The Committee considered that this level of bonus payout
would be appropriate, taking into account the performanceagainst strategic objectives (in particular her specific objectives
in relation to cost strategy), as well as the excellent broader
contribution Kate has made since joining Burberry last July.
Kate will apply 50% of her net bonus to acquire Burberry shares.

2021 Burberry Share Plan award
The Burberry Share Plan (BSP) awards granted in 2021 willvest in July 2024. This is the second annual vesting since the
BSP was established in 2020. As the current Executive Directors
were not employed by Burberry when the 2021 BSP awards
were granted, no awards are due to vest to them in 2024.
Details of the BSP awards granted to the Executive Directors
are set out on pages 132 to 134. BSP awards granted to otherparticipants in 2021 will vest in July 2024, further aligning ourmanagement population with shareholder interests.

* This measure removes the effect of changes in exchange rates compared to the prior period.

125Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

Remuneration Committee membership and meeting attendance during the year
Committee member

Member since

Danuta Gray (Chair)1 December 2021

Meeting attendance

4/4

Fabiola Arredondo

10 March 2015

4/4

Sam Fischer

1 November 2019

4/4

Ron Frasch

1 September 2017

4/4

Matthew Key1

26 September 2013

1/1

Orna NíChionna

3 January 2018

4/4

Alan Stewart2

12 July 2023

3/3

1. Matthew Key stepped down from the Committee with effect from 12 July 2023.
2. Alan Stewart was appointed to the Committee with effect from 12 July 2023.

Approach to remuneration for FY 2024/25
Salary and Board fees
After full consideration of the broader context and theapproach for the wider workforce, the Committee agreed thatneither Executive Director would receive a salary increase for
FY 2024/25. Similarly, it was agreed by the Committee andthe Board respectively that there would be no increase to the
Chair’s fee or the Non-Executive Directors’ fees for FY 2024/25.

Annual bonus
The annual bonus structure will follow a similar framework
to that in FY 2023/24. Executive Directors will be eligible fora maximum bonus of 200% of salary. The annual bonus will bebased 75% on adjusted operating profit and 25% on performanceagainst strategic objectives for the CEO and the CFO linked toour strategy and brand as well as our environmental and social
targets. Further details are provided on page 132.

BSP awards
In FY 2024/25, the CEO will be granted a BSP award of 162.5%
of salary and the CFO will be granted a BSP award of 150% ofsalary. The Committee carefully considered the impact of shareprice on the number of shares granted under the BSP andshareholder guidance in relation to this. In light of the broader
challenges in the luxury market and likely management actionthat will be required to deliver the strategy and drive the future
share price, the Committee considered that it would be better
able to judge whether a windfall gain had occurred at vestingrather than at award. The Committee therefore determined not
to scale back awards at grant. However, the Committee will
carefully consider whether it would be appropriate to scaleback awards at the point of vesting and a framework has beendeveloped to assist the Committee in identifying whether
Executive Directors have benefited from windfall gains at thattime. The Committee will continue to monitor the share priceup to the time the BSP awards are granted in July.

126

BSP awards for FY 2024/25 will be granted on the same basis
as the awards in FY 2023/24. Reflecting the simplified vestingschedule that was approved by shareholders at the AGM in
July 2023, awards will vest after three years and will then be
subject to a two-year post-vesting holding period. Awards willcontinue to be subject to the same performance underpins:(i) revenue, (ii) ROIC and (iii) brand and sustainability.
The Committee considers that these underpins continue
to represent a well-rounded and balanced approach tosafeguarding the financial stability of the business, delivering
our strategy and elevating the brand. Further details areprovided on page 133.

Broader employee reward
During the year, the Committee took time to listen to feedback
from colleagues about reward at Burberry and to deepen its
knowledge of the broader employee reward context. Although
inflation is now decreasing globally, the Committee recognisesthat there are ongoing cost-of-living challenges and highinterest rates and that these continue to have a disproportionate
impact on our more junior colleagues.
Burberry is committed to being a fair and responsible employer
and we are proud to be a Principal Partner of the Living Wage
Foundation and an accredited UK Living Wage employer. In April
2024, we implemented a pay increase of 12% for approximately
1,000 colleagues in the UK. This increase was above therecommended 10% real Living Wage increase. All other eligible
colleagues will receive salary increases at the usual time in July
2024. Alongside our performance-based approach, we will also
use the 2024 merit review to provide greater increases to ourmore junior colleagues. More details of this approach are setout on page 129.
Burberry introduced sustainability metrics to the annual
corporate bonus plan for the wider workforce for FY 2023/24.
The corporate bonus payout for eligible colleagues was therefore
based on adjusted operating profit, sustainability metrics
and individual performance. The introduction of sustainability
metrics has been well received and demonstrates the value
we place on sustainability as part of our strategy and has
supported the business in driving performance against our key
sustainability priorities. In FY 2024/25 sustainability metrics
will continue to form part of the annual corporate bonus plan.

Burberry Annual Report 2023/24

In December 2023, we granted our annual award of freeshares to all colleagues globally. We also offered ShareSave
in 17 countries and territories, including to our new colleagues
in Italy following the acquisition of a product development
business from our longstanding partner, Pattern SpA. For ourmanagement population, July 2023 saw the vesting of the 2020
BSP awards, the first annual vesting under the BSP since its
approval by shareholders in 2020.
Recognising the significance of meaningful communication
with our workforce, in March we once again held a dedicatedsession with our Global Workforce Advisory Forum on
remuneration at Burberry. This meeting allowed Forum members
to provide feedback on how we engage and communicate with ourcolleagues on pay and benefits. Suggestions were shared aroundhow to further improve the colleague experience in accessing
systems and supporting information relating to pay and benefits.
Forum members also offered insights on those benefits that arehighly valued by the wider workforce, including both financial
benefits and non-financial benefits such as training anddevelopment. The Committee highly values the contributions
by Forum members. I also ensure that the perspectives of ourworkforce are considered in Committee meetings.
Additional details on the broader workforce’s reward structure,along with its alignment with the Executive Directors’
remuneration, can be found on page 129.

Committee effectiveness
The Committee’s annual performance and effectiveness review
was undertaken as part of the externally facilitated Board
effectiveness review and I am pleased to note that the review
confirmed that the Committee operates well and provides
effective support to the Board. Further information on theprocess is set out on page 111.

2024 AGM
I look forward to receiving your support for the Directors’
Remuneration Report at the AGM on 16 July 2024.

Danuta Gray
Chair, Remuneration Committee

127

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

AT A GLANCEThe Directors’ Remuneration Policy was approved by shareholders at the AGM on 12 July 2023 and is set out
in full in the Directors’ Remuneration Report FY 2022/23, which can be found in the FY 2022/23 Annual Reportat Burberryplc.com.
Element

Approach for FY 2023/24

Approach for FY 2024/25

SalarySalaries from 1 July 2023:

After full consideration of the broader
context and the approach for the wider
workforce, no salary increases were awarded
for the Executive Directors for FY 2024/25.

• Jonathan Akeroyd (CEO) – £1,138,500• Kate Ferry (CFO) – £675,000(with effect from the commencementof her employment)

PensionPensions for FY 2023/24 were in line withthe maximum employer pension contribution
available to the majority of the UK workforce(currently 10% of salary).

No change for FY 2024/25.

Benefits

The cash benefits allowances for
FY 2023/24 were:No change for FY 2024/25.

• Jonathan Akeroyd (CEO) – £50,000• Kate Ferry (CFO) – £20,000 (with effectfrom the commencement of her
employment)
Non-cash benefits principally include private
medical, long-term disability insurance andlife assurance.

Annual bonus

Maximum annual bonus of 200% of salary.

No change for FY 2024/25.

Performance measures:• 75% adjusted operating profit• 25% strategic objectives for the CEO
and the CFO
Executives are required to invest 50%
of any net bonus into Burberry shares until
the shareholding guidelines are met.
Malus and clawback provisions apply.

Burberry Share Plan

Maximum annual award levels:

No change for FY 2024/25.

• Jonathan Akeroyd (CEO) – 162.5% of salary• Kate Ferry (CFO) – 150% of salary

Details of the performance underpins forthe 2024 awards are set out on page 133.

Awards vest in full after three years subject
to achievement of performance underpinsand are subject to a holding period to thefifth anniversary of grant of award.
Details of the performance underpins forthe 2023 awards are set out on page 132.
Malus and clawback provisions apply.

Shareholding
guidelines

300% of salary

No change for FY 2024/25.

Post-employment shareholding guidelineof 300% of salary (or actual shareholding
if lower) for two years after stepping down
as an Executive Director.

Details of the principles the Committee took into account when developing the Directors’ Remuneration Policy, including Provision
40 of the UK Corporate Governance Code, are set out on page 212 of the FY 2022/23 Annual Report.
The Committee considers that the Directors’ Remuneration Policy operated as intended during FY 2023/24.

128

Burberry Annual Report 2023/24

BROADER EMPLOYEE REWARD AT BURBERRYAt Burberry, our reward philosophy is to provide our colleagues across the Group with fair, equitable andcompetitive total reward. Our remuneration framework is designed to support our purpose and values, and to
inspire our colleagues to deliver outstanding results. Our framework is cascaded across the Group and consistsof the following key components:
Element

How we reward and support our colleagues

Base salary

We have:

All colleagues receive
a fair and equitable
market‑driven salary• Reviewed salaries on an annual basis through our merit review process• Implemented a pay increase in April 2024 of 12% for approximately 1,000 colleagues in the UK.
This was above the recommended 10% real Living Wage increase in recognition of ongoingcost-of-living challenges our UK colleagues are facing• Introduced a scaled approach for the 2024 merit review where we have differentiatedproportionately higher increases to our more junior colleagues. As in prior years, final merit
increases reflect individual performance. For example, in the UK, the salary budget was 4%,
with individual increases ranging from 0% to 8% depending upon individual performance andorganisational level
Executive Director alignment: There will be no increase to the base salaries of Executive
Directors with effect from 1 July 2024.

Benefits

Our global benefits offer includes:

All colleagues are eligible
to participate in a rangeof market-driven benefits,
including those promoting
wellbeing and supporting
saving for retirement• Parental Leave Policy providing all eligible new parents with 18 weeks’ paid leave• Wellbeing days (in addition to annual leave entitlement) providing paid time off during the year
• Volunteering Policy providing colleagues with three paid volunteering days per year
• Employee discount and product sales• Long service awards at each five-year milestone• Pension schemes available in line with local market practice• Access to Employee Assistance Programme
Executive Director alignment: Executive Directors receive a pension allowance in line with therate available to the majority of the UK workforce. They are eligible for a range of market-typical
non-cash benefits.

Bonus

We have:

All colleagues are
eligible for short-term
performance-related pay
to recognise and reward
their contribution• Introduced sustainability metrics to the corporate annual bonus plan, alongside the Groupadjusted operating profit target and individual performance• Implemented further changes to our Retail Variable Pay Plan so that colleagues in retail who
participate in our retail bonus and commission plans are effectively incentivised and rewarded
for their performance through the delivery of store sales targets and specific retail KPIs
Executive Director alignment: Group adjusted operating profit, sustainability and individual
performance targets apply to the bonuses for the Executive Directors and participants in thecorporate annual bonus plan.

Share plans

We offer the following share plans at Burberry:

All colleagues are eligible
to participate in Burberryshare plans to recognise
and reward theircontribution and to enable
them to share in our
future success• FreeShare Plan: gives all colleagues the opportunity to participate in our future successthrough an annual award of free shares with a value of approximately £500
• ShareSave: provides the opportunity for colleagues to save monthly from their pay up to a
maximum of £500 per month and buy shares at a 20% discount to the market price at grant• Burberry Share Plan (BSP): rewards approximately 700 of our senior colleagues for deliveringon our strategy which we believe will drive greater longer-term returns for our stakeholders.
Awards are granted annually and vest after three years. In July 2023, our 2020 BSP awards
vested, the first annual vesting under the BSP since it was approved by shareholders in 2020.
BSP awards will now continue to vest annually, subject to continued employment, with the next
annual vesting in July 2024
Executive Director alignment: Executive Directors are eligible to participate in our share plans.

129

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

ANNUAL REPORT ON REMUNERATION
FY 2023/24 total single figure remuneration for Executive Directors (audited)
The table below sets out the single figure of total remuneration received or receivable by the Executive Directors in respect of
FY 2023/24 (and the prior financial year). The subsequent sections detail additional information for each element of remuneration.
Burberry
Share Plan
(BSP)
£’000

Prior company
buy-out
awards2£’000

Total fixed
remuneration£’000

Salary£’000

Allowancesand benefits£’000Year to 30 March 2024

1,129

105

113

–

–

–

–

1,347

1,347

–

Year to 1 April 2023

1,096

86

110

1,298

–

–

1,699

4,289

1,292

2,997

479

36

48

122

–

–

1,278

1,963

563

1,400

Pension
£’000

Bonus
£’000

All-employee
share plans
£’000

Total
£’000

Total variable
remuneration£’000

Jonathan Akeroyd

Kate Ferry
Year to 30 March 20241

1. Remuneration in the table above in relation to Kate Ferry for the year to 30 March 2024 relates to her period of employment as CFO from 17 July 2023.
2. The value shown in the prior company buy-out awards column for Jonathan Akeroyd represents the value of buy-out awards granted to him on 15 March 2022. Further details are
set out in the Directors’ Remuneration Report FY 2021/22. The value shown in the prior company buy-out awards column for Kate Ferry represents the value of her buy-out awards.
Further details are set out in the Directors’ Remuneration Report FY 2022/23.

Salary (audited)
The table below details annual salaries as at 1 April 2024. Taking into account business performance and the broader shareholder
experience, the Committee determined that annual salaries for the Executive Directors will not be increased from 1 July 2024.
The budgeted salary increase for our UK workforce for 2024 was 4%.
As at
30 March 2024

As at
1 July 2024

% change

Jonathan Akeroyd£1,138,500£1,138,500

0%Kate Ferry£675,000£675,0000%Pension (audited)
The pension cash allowances for Jonathan Akeroyd and Kate Ferry are aligned to the maximum employer pension contribution
available to the majority of the UK workforce at 10% of base salary.
No Director has a prospective entitlement to receive a defined benefit pension.

Allowances and benefits (audited)
The table below details the cash allowances and non-cash benefits received by the Executive Directors during FY 2023/24
in accordance with the Directors’ Remuneration Policy and as disclosed in the single figure table.
Cashallowance

PrivatemedicalinsuranceLifeassurance

Long-term
disability
insurance

Tax and legal
adviceOther

Jonathan Akeroyd

50

15

17

21

2

–

Kate Ferry

14

1

2

1

18

–

FY 2023/24 (£’000)

1. Values shown above reflect the fact that Kate Ferry’s employment commenced on 17 July 2023.
2. The value shown in the tax and legal advice column for Kate Ferry reflects legal fees incurred in respect of her appointment.

There were no changes to benefits policies during the year.

130Burberry Annual Report 2023/24

Annual bonus for FY 2023/24 (audited)
Both Executive Directors were eligible for a maximum bonus of 200% of base salary. As disclosed in the FY 2022/23 Annual Report,
Kate Ferry was eligible to participate in the FY 2023/24 bonus without any pro-rating in lieu of remuneration forfeited on leaving
her previous employer. The annual bonus for FY 2023/24 was based 75% on Group adjusted operating profit performance(at FY 2022/23 CER) and 25% on strategic objectives including strategic, operational and environmental and social measures.

Adjusted operating profit performance
The table below sets out the targets and the performance achieved for FY 2023/24 in relation to the Group adjusted operating profit
performance measure:
Maximumbonus opportunity(% of salary)

Jonathan Akeroyd

200%

Kate Ferry

FY 2023/24 Group adjusted operating profit targets
ThresholdTargetMaximum

FY 2023/24
Group adjusted
operating profit
achieved (CER1)

£666m

£720m

£774m

£478m

1. This measure removes the effect of changes in exchange rates.

Adjusted operating profit for bonus purposes is calculated using the average exchange rates of FY 2022/23 and on a pro forma
basis. Details of pro forma results for FY 2023/24 are set out on page 25.
Based on the adjusted operating profit delivered, this element of the annual bonus will pay out at 0% (out of 75%).

Strategic performance
The following table summarises performance against the key strategic, operational and environmental and social measures
for FY 2023/24:
Strategic objectives

Performance in FY 2023/24

Strategy and brand• Good progress made in developing the brand through enhanced brand focus• Positive reactions to key brand events• Revenue performance for all regions and digital behind target• Good progress in reconfiguring our supply chain to deliver our new elevated offer• Acquisition and integration of a product development business from one of our longstanding technicalouterwear partners, enabling us to strengthen distribution and enhancing efficiencies and reliability• Good progress on elevating the customer experience with on-target delivery of stores converted to newconcept during the year

Environmental andsocial measures• Phasing out the use of virgin cashmere in specific product categories• Increased use of excess raw materials to support our decarbonisation agenda• Sourced 56% of cotton certified as organic• Communicated sustainable products and services across all marketing channels• Good progress against our target by introducing new plastic-free alternatives for our consumer packaging• Stable colleague engagement score

In addition, good progress was made in relation to the CFO’s specific objectives in relation to cost strategy, including on disciplined
cost control throughout the business.

Annual bonus outcome for FY 2023/24
The Committee judged that progress was made on refining our brand image, evolving our product and strengthening distribution,
resulting in some of the strategic objectives being partially met. However, in light of the business performance and broader shareholder
experience, the Committee and Jonathan Akeroyd agreed that it would not be appropriate for him to receive an annual bonus for
FY 2023/24. The Committee determined that Kate Ferry would receive an annual bonus for FY 2023/24 of £121,500, representing
9% of her maximum bonus. The Committee considered that this level of bonus payout would be appropriate, taking into account theperformance against strategic objectives (in particular her specific objectives in relation to cost strategy), as well as the excellent
broader contribution Kate has made since joining Burberry last July.
Under the Directors’ Remuneration Policy, the Executive Directors are required to invest 50% of any net bonus earned into Burberryshares until their shareholding guideline of 300% of salary is met. Kate Ferry will invest 50% of her net annual bonus for FY 2023/24
into Burberry shares.

131Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

Annual bonus for FY 2024/25

Long-term incentive plan awards

For FY 2024/25 the Executive Directors will be eligible fora maximum bonus of 200% of salary. The annual bonus for
FY 2024/25 will be based 75% on Group adjusted operating
profit performance (at FY 2023/24 CER) and 25% on strategic
objectives. The adjusted operating profit targets are considered
to be commercially sensitive and will be disclosed in the
Directors’ Remuneration Report FY 2024/25.

The following section sets out details of:

The strategic objectives for FY 2024/25 for the CEO and the
CFO will continue to be based on a combination of strategic,
operational and environmental and social measures. For eachstrategic area, the Committee will determine the payout in theround, taking into account our progress in the year against ourlong-term objectives in these areas. Details of the progressachieved and the Committee’s determination of bonus
outcomes will be provided in the Directors’ Remuneration
Report FY 2024/25.
Under the Directors’ Remuneration Policy, the Executive
Directors are required to invest 50% of any net bonus earned
into Burberry shares until their shareholding guideline of 300%of salary is met.

• 2021 BSP awards vesting based on performance to FY 2023/24• 2023 BSP awards granted during FY 2023/24• 2024 BSP awards to be granted during FY 2024/25

2021 BSP awards vesting subject toperformance underpins to FY 2023/24(audited)
Neither Executive Director was in role when the 2021 BSP
awards were granted and therefore no BSP awards will vest
to Executive Directors based on performance to FY 2023/24.

2023 BSP awards granted during
FY 2023/24 (audited)
The Committee granted a 2023 BSP award of 162.5% of salary
to Jonathan Akeroyd and of 150% of salary to Kate Ferry on
27 July 2023 in line with the Directors’ Remuneration Policy
approved by the shareholders at the 2023 AGM.

The table below summarises the BSP share awards granted to the Executive Directors during FY 2023/24.
Shares awarded

Face value at grant(£’000)162.5% of salary

84,780£1,8503 years to 28 March 2026

150% of salary

46,398£1,012

3 years to 28 March 2026

Type of award

Basis of award

Jonathan Akeroyd

BSP share award

Kate Ferry

BSP share award

Performance
underpin period

Following the approval of the Directors’ Remuneration Policy by shareholders at the AGM in July 2023, 2023 BSP awards granted
to the Executive Directors will vest in full three years from the grant date, subject to the performance underpins outlined below.
The awards will be subject to a two-year holding period so that the total time horizon before any sale of shares (except to cover any
tax liabilities arising from the award) is five years for the entire award.
The face value of each award was calculated using the three-day average price prior to the date of grant (£21.8217), which was theprice used to determine the number of shares awarded.
BSP awards granted in 2023 are subject to the following underpins:

2023 BSP award
performance
underpins

Details

Revenue

The level of Total Revenue at CER for the financial year which precedes the year of vesting beingat least £3,200 million

ROIC

The level of Group ROIC at reported exchange rates for the financial year which precedes theyear of vesting being at least 1% above the Group’s WACC in the year of vesting (the Group’s
WACC was c.10% at the time of award)

Brand and sustainability
strategies

Reasonable progress having been achieved over the vesting period in respect of our strategy
to elevate our brand and to build a more sustainable future:• Brand: when assessing the brand underpin the Committee will consider performance against
a range of relevant brand KPIs. This may include full-price sales, outerwear and leather goods
sales and progress on brand elevation, but it may also include other relevant metrics. These
metrics are all considered to be aligned with our strategy of elevating the brand to generate
long-term value for shareholders• Sustainability: when assessing the sustainability underpin the Committee will consider whether
reasonable progress has been delivered against our sustainability and carbon reduction goals
to reduce scope 3 emissions by 46% by 2030 and to become Climate Positive by 2040 (as set
out on pages 50 to 67 of the FY 2022/23 Annual Report)132

Burberry Annual Report 2023/24

If the Company does not meet one or more of the performance
underpins outlined on page 132 for the year of vesting, then theCommittee would consider whether it was appropriate to scaleback the level of payout under the BSP award. The intentionof the performance underpins is to provide a ‘safeguard’ toensure that the BSP awards do not pay out if the Company has
underperformed and vesting is not justified; the Committee willtake this intention into account when assessing the underpins.
In addition to the underpins described on page 132, theCommittee also retains the discretion to adjust the vestingoutcome if it is not considered to be reflective of the underlying
financial or non-financial performance of the business or the
performance of the individual, where underpins are no longer
considered appropriate or where the vesting outcome is notconsidered appropriate in the context of the experience ofshareholders or other stakeholders.

2024 BSP awards to be granted in FY 2024/25
The Committee intends to grant 2024 BSP awards of 162.5%
of salary to the CEO and 150% of salary to the CFO. The
Committee carefully considered the impact of share price on
the number of shares granted under the BSP and shareholder
guidance in relation to this. In light of the broader challenges
in the luxury market and likely management action that will be
required to deliver the strategy and drive the future share price,
the Committee considered that it would be better able to judge
whether a windfall gain had occurred at vesting rather than ataward. The Committee therefore determined not to scale backawards at grant. However, the Committee will carefully consider

whether it would be appropriate to scale back awards at the
point of vesting and a framework has been developed to assist
the Committee in identifying whether Executive Directors havebenefited from windfall gains at that time. The Committee willcontinue to monitor the share price up to the time of the grantof the award in July.
The awards will vest in full three years following the date of
grant, subject to the performance underpins. The awards will be
subject to a two-year holding period so that the total time horizon
before any sale of shares (except to cover any tax liabilities
arising from the award) is five years for the entire award.
If the Company does not meet one or more of the performance
underpins outlined below, then the Committee would consider
whether it was appropriate to scale back the level of payout
under the BSP award. The Committee would retain discretion
to determine the appropriate level of scale-back.
The Committee has reviewed the performance underpins anddetermined that the underpins that applied to previous awards
continue to reflect a good overall balance of safeguarding thefinancial stability of the business, delivery of the strategy andelevation of the brand. The following performance underpins
will apply for the 2024 awards:

2024 BSP award
performance
underpins

Details

Revenue

The level of Total Revenue at CER for the financial year which precedes the year of vesting beingat least £3,200 million

ROIC

The level of Group ROIC at reported exchange rates for the financial year which precedes the yearof vesting being at least 1% above the Group’s WACC (currently c.10%) in the year of vesting

Brand and sustainability
strategies

Reasonable progress having been achieved over the vesting period in respect of our strategy
to elevate our brand and to build a more sustainable future:• Brand: when assessing the brand underpin the Committee will consider performance against
a range of relevant brand KPIs. This may include full-price sales, outerwear and leather
goods sales and progress on brand elevation, but it may also include other relevant metrics.
These metrics are all considered to be aligned with our strategy of elevating the brand to
generate long-term value for shareholders• Sustainability: when assessing the sustainability underpin the Committee will consider whether
reasonable progress has been delivered against our sustainability and carbon reduction goals

In addition to the underpins described above, the Committee also retains the discretion to adjust the vesting outcome if it is notconsidered to be reflective of the underlying financial or non-financial performance of the business or the performance of theindividual, where underpins are no longer considered appropriate or where the vesting outcome is not considered appropriate
in the context of the experience of shareholders or other stakeholders.

Payments to past Directors
There were no payments to past Directors above a de minimis limit of £3,000 during the year.

133Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

Share interests and shareholding guideline (audited)
Executive Directors are subject to a shareholding guideline of 300% of base salary. There is no specific timeline in whichshareholding guidelines must be achieved. However, there is an expectation that Executive Directors make annual progress towards
their guideline, regardless of any annual bonus paid or shares vesting. In line with the Investment Association best practice guidance,
our shareholding guideline permits any incentive shares that have vested but are unexercised or that have not yet vested but are notsubject to any further performance conditions/underpins to count towards the shareholding requirement at 50% of their face value.
Other members of the Executive Committee are also subject to a shareholding guideline.
The following table sets out the total beneficial interests of the Executive Directors (and their connected persons) in ordinary sharesof Burberry Group plc as at 30 March 2024, as well as their progress against the shareholding guidelines. The table also summarises
conditional interests in share or option awards, with further detail of the underlying awards in the subsequent table.
Based on the three-month average share price to 30 March 2024 (our standard approach to assessing the guideline), neither
Jonathan Akeroyd nor Kate Ferry had met the guideline. Jonathan Akeroyd had exceeded his guideline (with a shareholding of 360%of salary) as at 1 April 2023. He now holds more shares but the value of his shareholding as a percentage of his salary has decreased
given the decrease in share price. Given that Kate Ferry only joined the Company in July 2023, she has not yet met the guideline.
Beneficially held shares
Number of sharesbeneficiallyowned as at
30 March 20241

Jonathan AkeroydShare/option awards
Unvested –subject toperformance
underpins (BSP)

Unvested –subject tocontinued
employment3

As % of salary2

Shareholding
guideline(% of salary)

Guideline met as
at 30 March 2024

Vested but
unexercised
awards166,987

202%

300%

No

0

188,91126,493

33

0%

300%

No

0

46,398

1,517

Kate Ferry

1. There have been no changes in the period up to and including 14 May 2024.
2. Based on the three-month average share price as at 30 March 2024 of £12.85.
3. In line with the shareholding guideline, only 50% of the face value of these shares counts towards the Executive Director’s shareholding guideline calculation (other than shares
under the all-employee SIP, which are held beneficially and count towards the Executive Director’s shareholding guideline calculation). This also includes ShareSave options(which do not count towards the Executive Director’s shareholding guideline calculation).

As former Executive Directors, Marco Gobbetti and Julie Brown are required to comply with Burberry’s post-employment
shareholding guideline in respect of share awards that vested on or after the date of the AGM in July 2020. Under this guideline
Marco was expected to retain a shareholding of 21,393 shares until 31 December 2023. As at 31 December 2023, Marco compliedwith his obligation. Julie is expected to retain a shareholding of 10,350 shares until 1 April 2025. As at 30 March 2024, Julie compliedwith her obligation.
The following table provides further underlying detail on the unvested awards at 30 March 2024 included in the table above.
Director

Type of award

Date of grantMaximum numberof shares/options

Performance period

Vesting date(s)4Jonathan Akeroyd

Buy-out1

15 March 2022

24,643N/A

15 June 2024

2022 BSP2

27 July 2022

104,131

3 years to 29 March 2025
4 years to 28 March 2026
5 years to 27 March 2027

1/3 on 27 July 2025
1/3 on 27 July 2026
1/3 on 27 July 2027

2023 BSP3

27 July 2023

84,7803 years to 28 March 2026

27 July 2026

ShareSave5

15 December 2022

1,794

N/A

1 February 2028

SIP

15 December 2022

23

N/A

15 December 2025

Kate Ferry

SIP

14 December 2023

33

N/A

14 December 2026

2023 BSP3

27 July 2023

46,3983 years to 28 March 2026

27 July 2026

ShareSave6

14 December 2023

1,484

N/A

1 February 2027

SIP

14 December 2023

33

N/A

14 December 2026

1. Further details in relation to the buy-out awards granted to Jonathan Akeroyd are set out on pages 202 to 203 of the FY 2021/22 Annual Report.
2. The performance underpins for the 2022 BSP award are set out on page 231 of the FY 2022/23 Annual Report.
3. The performance underpins for the 2023 BSP award are set out on page 132.
4. Vested BSP awards may not normally be sold until five years from the date of grant, other than to meet tax liabilities.
5. On 15 December 2022, Jonathan Akeroyd was granted a ShareSave option over 1,794 shares at an option price of £16.72 per share.
6. On 14 December 2023, Kate Ferry was granted a ShareSave option over 1,484 shares at an option price of £12.50 per share.

134

Burberry Annual Report 2023/24

Director remuneration relative to employees
The table below summarises the change in each Director’s base salary/fee, benefits and bonus received for FY 2023/24, FY 2022/23,
FY 2021/22 and FY 2020/21 compared to the prior year. The regulations require disclosure of the same data for employees of theparent company. However, Burberry Group plc does not have any employees and therefore the table below includes data in respectof the UK employee population for reference.
FY 2020/21
Salary/fee

Allowancesandbenefits

Bonus

JonathanAkeroyd––

Kate Ferry–

Gerry Murphy
FabiolaArredondo

Year-on-yearchange (%)

FY 2021/22
Salary/fee

Allowancesandbenefits

Bonus

–

N/A

N/A

–

–

–

-5.0%

-93.3%

–

-5.0%

-100%

–

FY 2023/24

FY 2022/23
Salary/fee

Allowancesandbenefits

Bonus

N/A

3.0%

22.5%

-100%

–

–

N/A

N/A

N/A

0%

-75.4%–

3.0%

712.4%

–

0%

N/A

–

3.0%

-5.8%

–

–

Salary/fee

Allowancesandbenefits

Bonus

N/A

0%

17.4%

–

–

–

5.3%

-21.4%

–

5.3%

N/A

–

Executive
Directors

NonExecutive
Directors

Alessandra
Cozzani

–

–

–

–

–

–

–

–

N/A

N/A

N/A

Sam Fischer

-5.0%

-100%

–

5.3%

N/A

–

0% 1,453.6%

–

3.0%

-33.2%–Ron Frasch

-5.0%

-100%

–

5.3%

N/A

–

0%

171.1%

–

3.0%

64.4%

–

Danuta Gray

–

–

–

N/A

N/A

N/A

25.1% 1,267.2%

–

17.0%

71.7%

–

Debra Lee

-5.0%

-100%

–

5.3%

N/A

–

0%

N/A

–

3.0%

0.4%

–

Orna
NíChionna

-0.9%

96.2%

–

-10.4%

20.8%

–

-3.5%

-66.3%–

3.6%-21.7%–

Antoine deSaint-Affrique

N/A

N/A

N/A

0%

N/A

–

0%

155.2%

–

3.0%

0.4%

–

Alan Stewart

–

–

–

–

–

–

N/A

N/A

N/A

34.5%

3.7%

–

Matthew Key

-3.5%

-100%

–

3.6%

N/A

–

0%

133.3%–

1.6%-68.7%–UK Employees

0%

0%

-7.7%

0%

0% 233.3%

4.0%

0% -48.0%

4.0%

FormerNonExecutive
Directors
0% -85.6%

1. The comparator group includes all UK employees. As noted above, Burberry Group plc does not have any employees and therefore this group has been chosen to align withthe location of the Executive Directors and with the pay ratio reporting. For the comparator group of employees, the year-on-year salary changes include the annual salary review
in July but exclude any additional changes made in the year, for example on promotion. For FY 2021/22 benefits, the maximum employer pension contribution available to themajority of the UK workforce was increased from 6% of salary to 10% of salary with effect from 1 January 2022. The change in the value of benefits shown for the Executive
Directors reflects the market cost of the same benefits.
2. In order to provide a meaningful comparison, the figures in the table above have been calculated on a full-year equivalent basis where Directors have served for part of the year only.
3. Where a Director was appointed during a financial year, it is not possible to calculate a percentage change for them and they are shown as N/A.
4. The Executive Directors did not receive an annual bonus for FY 2019/20 and therefore it is not possible to calculate a percentage change on bonus in respect of FY 2020/21.
Jonathan Akeroyd did not receive an annual bonus for FY 2021/22 and therefore it is not possible to calculate a percentage change on bonus in respect of FY 2022/23.
5. The Directors in role at the time voluntarily agreed to waive 20% of their salary/base fee for a three-month period between April and June 2020. This is reflected in the negativechanges shown in respect of FY 2020/21 and the corresponding positive changes shown in respect of FY 2021/22.
6. The allowances and benefits figures for FY 2020/21 for Gerry Murphy and Orna NíChionna were low due to the impact of COVID-19. In order to provide a meaningful comparison,
the percentage change figure for FY 2021/22 was calculated relative to the allowances and benefits figure for FY 2019/20.
7. Allowances and benefits increased for Non-Executive Directors during FY 2022/23 due to the return of regular in-person meetings.
8. Orna NíChionna was appointed as Senior Independent Director with effect from 2 April 2022.
9. Danuta Gray replaced Orna NíChionna as Remuneration Committee Chair on 1 September 2022.
10. Alan Stewart replaced Matthew Key as Audit Committee Chair on 12 July 2023.

135

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

CEO pay ratios
The ratios set out in the table below compare the total remuneration of the CEO (as included in the single figure table on page 130)to the remuneration of the median UK employee as well as the UK employees at the lower and upper quartiles. The disclosure willbuild up over time to cover a rolling 10-year period.
Year

Method25th percentile
pay ratio(P25)

Median pay ratio(P50)

75th percentile
pay ratio(P75)

FY 2023/24

Option A

44:1

33:1

21:1

FY 2022/23

Option A

153:1

116:1

73:1

FY 2021/22

Option A

225:1

167:1

105:1

FY 2020/21

Option A

92:1

71:1

44:1

FY 2019/20

Option A

68:1

48:1

31:1

FY 2018/19

Option A

170:1

127:1

82:1

Notes regarding calculation
The ratios are calculated using option A in the disclosure regulations. The employees at the lower quartile, median and upper
quartile (P25, P50 and P75, respectively) were determined based on total remuneration using a valuation methodology consistent
with that used for the CEO in the single figure table on page 130. The employees were identified based on all UK employees as atyear end. This option was selected on the basis that it provided the most accurate means of identifying the median, lower and upper
quartile employees.
The total remuneration in respect of FY 2023/24 for the employees identified at P25, P50 and P75 is £31k, £41k and £65k, respectively.
The base salary in respect of FY 2023/24 for the employees identified at P25, P50 and P75 is £26k, £37k and £57k, respectively.
The Committee considers pay ratios as one of many reference points when considering remuneration. Throughout the Group, pay
is positioned to be fair and market-competitive in the context of the talent market for the relevant role, fairly reflecting local market
data and other relevant benchmarks (such as the UK Living Wage). The Committee notes the limited comparability of pay ratios
across companies and sectors, given the diverse range of business models and employee population profiles which exist
across the market.
A significant proportion of the CEO’s total remuneration is delivered in variable remuneration, and particularly via long‑term share
incentives. In order to drive alignment with shareholders, the value ultimately received from share incentive awards is linked tolong-term share price movement. As a result, the pay ratio is likely to be driven largely by the CEO’s incentive outcomes and may
therefore fluctuate significantly on a year-to-year basis.
The pay ratio for FY 2023/24 has decreased compared to the ratio for FY 2022/23. This is primarily driven by the fact that Jonathan
Akeroyd did not receive a bonus for FY 2023/24 and was not in role to receive a BSP award that vested in respect of FY 2023/24.
The Committee considers that the median pay ratio for FY 2023/24 and the recent trends in the pay ratios are consistent with
Burberry’s remuneration framework and reflect the variable nature of the CEO’s total remuneration. The Committee believes the pay
ratio is consistent with our pay policies in the UK.

136

Burberry Annual Report 2023/24

Relative importance of spend on pay for FY 2023/24
The table below sets out the total payroll costs for all employees over FY 2023/24 compared to total dividends payable for the year
and amounts paid to buy back shares during the year. The average number of full-time equivalent employees is also shown for context.
FY 2023/24

FY 2022/23

£m

233

203

% change+15%

Relative importance of spend on pay

Dividends paid during the year (total)
Amounts paid to buy back shares during the year
Payroll costs for all employees

£m

400

% change

0%

£m

572

% change

-1%
9,169

Average number of full-time equivalent employees% change

400
575
8,868

+3%

Service agreements
The table below sets out information on service agreements for the current Executive Directors. Executive Directors are subject
to annual re-election by shareholders at each AGM of the Company.
Date of current
service agreement

Date employment
commenced

Notice period to andfrom the Company

Jonathan Akeroyd

19 October 2021

15 March 2022

12 months

Kate Ferry

14 March 2023

17 July 2023

12 months

The Non-Executive Directors serve under Letters of Appointment with the Company. Non-Executive Directors may continue to serve
subject to annual re-election by shareholders at each AGM of the Company, subject to six months’ notice by either party.

137

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration ReportTen-year performance graph and Chief Executive Officer’s remuneration
The following graph shows the Total Shareholder Return (TSR) for Burberry Group plc compared to the FTSE 100 Index assuming£100 was invested on 31 March 2014. The FTSE 100 Index has been selected as the comparator because Burberry is a constituentof the index. Data is presented on a spot basis and sourced from Datastream. The table below shows the total remuneration earned
by the incumbent CEO over the same 10-year period, along with the percentage of maximum opportunity earned in relation to eachtype of incentive. The total amounts are based on the same methodology as used for the single figure of total remuneration for
FY 2023/24 on page 130.

£
300
250

£177
(77% increase)

200
150
100

£110
(10% increase)

50
0

2014

2015

2016

Burberry

2017

2018

2019

2020

2021

2022

2023

2024

FTSE 100

2014/15(AA)

2014/15(CB)

2015/16(CB)

2016/17(CB)

2017/18(CB)

2017/18(MG)

2018/19(MG)

2019/20(MG)

2020/21(MG)

2021/22(MG)

2021/22(JA)

2022/23(JA)

2023/24(JA)

Total remuneration(£’000)

157

7,508

1,894

3,508

1,091

6,330

4,078

1,618

2,245

1,205

4,428

4,289

1,347

Bonus
(% of maximum)

–

81%

0%

0%

51%

51%

60%

0%

25%

–

–

59%

0%

BSP (% of maximum)

–

–

–

–

–

–

–

–

–

–

–

–

–

FY1

Legacy incentive plans (no longer in operation):
ESP (% of maximum)

–

–

–

–

5%

–

25%

0%

5.5%

–

–

–

–

CIP2 (% of maximum)

–

75%

0%

0%

–

–

–

–

–

–

–

–

–

RSP (% of maximum)

–

–

0%

19.3%

–

–

–

–

–

–

–

–

–

Exceptional award3(% of maximum)

–

–

–

61.7% 59.9%

–

–

–

–

–

–

–

–

1. Angela Ahrendts (AA, CEO to 30 April 2014), Christopher Bailey (CB, Chief Creative Officer and CEO from 1 May 2014 to 4 July 2017), Marco Gobbetti (MG, CEO from 5 July 2017
to 31 December 2021), Jonathan Akeroyd (JA, CEO from 15 March 2022).
2. The CIP was the Burberry Co-Investment Plan, a long-term incentive plan under which the final performance-based awards were granted in 2014. Details of this plan can be foundin the relevant Directors’ Remuneration Reports.
3. The exceptional award for Christopher Bailey relates to vesting of his 2014 exceptional share award as previously disclosed.

138Burberry Annual Report 2023/24

Non-Executive Director remuneration (audited)
The table below sets out the single figure of total remuneration received or receivable by the Non-Executive Directors in respectof FY 2023/24 (and the prior financial year).
Year to 30 March 2024
Fees1
£’000

Year to 1 April 2023

Benefits andallowances2
£’000

Total
£’000

Fees1
£’000

Benefits andallowances2
£’000

Total
£’000

Non-Executive Directors
Gerry Murphy

436

9

445

423

1

424

Fabiola Arredondo

82

19

101

80

20

100

Alessandra Cozzani3

48

13

61

–

–

–

Sam Fischer

82

21

103

80

31

111

Ron Frasch

82

36

118

80

22

102

Danuta Gray4

117

5

122

100

3

103

Debra Lee

82

20

102

80

20

100

Orna NíChionna5

102

3

105

114

3

117

Antoine de Saint-Affrique

82

19

101

80

19

99

Alan Stewart6

107

2

109

47

2

49

32

1

33

115

3

118

Former Non-Executive Directors
Matthew Key7

1. Fees include the base fee and additional Committee fees in line with the existing Directors’ Remuneration Policy.
2. For Non-Executive Directors other than the Chair, allowances include an attendance allowance for each meeting attended outside their country or territory of residence.
Non-Executive Directors appointed before 11 May 2023 currently receive £2,000 per meeting. Non-Executive Directors appointed from 11 May 2023 currently receive £2,000 for
meetings that involve inter-continental travel and £1,000 for other meetings outside their country or territory of residence. Allowances also include the reimbursement of certain
expenses incurred by the Non-Executive Directors in the performance of their duties, which are deemed by HM Revenue & Customs (HMRC) to be subject to UK income tax.
Any tax liabilities arising on the reimbursement of these costs will be settled by the Company. Amounts disclosed have been estimated and have been grossed up at theappropriate tax rate, where necessary.
3. Fees for Alessandra Cozzani relate to the period from 1 September 2023 when she was appointed to the Board.
4. Fees for Danuta Gray in relation to FY 2022/23 include the Remuneration Committee Chair fee from 1 September 2022.
5. Fees for Orna NíChionna in relation to FY 2022/23 include the Remuneration Committee Chair fee for the period 2 April to 31 August 2022 and the Senior Independent Director fee.
6. Fees for Alan Stewart in relation to FY 2022/23 relate to the period from 1 September 2022 when he joined the Board and in relation to FY 2023/24 include the Audit Committee
Chair fee from 12 July 2023.
7. Fees for Matthew Key in relation to FY 2023/24 relate to the period to 12 July 2023 when he stepped down from the Board and include the Audit Committee Chair fee to this date.

Summary of Non-Executive Director fees for FY 2024/25
Following a review, the Chair’s fee and the base fee for the Non-Executive Directors will remain unchanged with effect from 1 July 2024.
The fee structure for the Non-Executive Directors for FY 2024/25 is set out in the table below.
Fee level£’000

Chair1440

Non-Executive Director

82.8

Senior Independent Director

20

Audit Committee Chair

35

Remuneration Committee Chair
Attendance allowance2

35
Up to 2

1. The Chair is not eligible for Committee-related fees or attendance allowances.
2. For Non-Executive Directors other than the Chair, allowances include an attendance allowance for each meeting attended outside their country or territory of residence.
Non-Executive Directors appointed before 11 May 2023 currently receive £2,000 per meeting. Non-Executive Directors appointed from 11 May 2023 currently receive £2,000
for meetings that involve inter-continental travel and £1,000 for other meetings outside their country or territory of residence.
3. Expenses incurred in the normal course of business are reimbursed and, as these are considered by HMRC to be taxable benefits, the tax due on these will also be metby the Company.

139Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

Non-Executive Director shareholdings (audited)
The table below summarises the total interests of the Non-Executive Directors (and their connected persons) in ordinary sharesof Burberry Group plc as at 30 March 2024 (or as at the date of stepping down, if earlier).
In line with the shareholding guideline, Non-Executive Directors hold shares with a market value at acquisition of £6,000 for eachyear of their appointment. As at 30 March 2024 (or as at the date of stepping down, if earlier), all of the Non-Executive Directors who
had served more than one year since their appointment had fulfilled this guideline.
Total number ofshares owned

Non-Executive Directors
Gerry Murphy

15,000Fabiola Arredondo

30,000

Alessandra Cozzani
Sam Fischer

0
3,000

Ron Frasch

2,738

Danuta Gray

3,000

Debra Lee

1,475

Orna NíChionna

3,067

Antoine de Saint-Affrique

1,100

Alan Stewart

2,226

Former Non-Executive Directors
Matthew Key

9,040

There have been no changes in the period up to and including 14 May 2024.

Remuneration Committee in FY 2023/24
Committee membership
Danuta Gray, Fabiola Arredondo, Sam Fischer, Ron Frasch and Orna NíChionna served as members of the Committee throughout theyear ended 30 March 2024. Matthew Key served as a member of the Committee until he stepped down from the Board on 12 July 2023.
Alan Stewart served as a member of the Committee from 12 July 2023.

Committee remit
The Committee’s terms of reference are published on Burberryplc.com.
In addition to setting the remuneration of the Executive Directors, the Committee continues to directly oversee the remuneration
arrangements for the Executive Committee, the Company Secretary and other members of senior management within its remit
as determined from time to time.

140

Burberry Annual Report 2023/24

Summary of meetings
The Committee typically meets four times a year. During FY 2023/24, the Committee held four scheduled meetings. Other ad hoc
discussions were held as required. Details of attendance at Committee meetings are set out on page 126. If any Committee members
are unable to attend a meeting, they are given the opportunity to discuss any of the agenda items with the Committee Chair in advanceof the meeting. The agenda items discussed at the four scheduled meetings are summarised below. Other Committee matters, including
the remuneration arrangements for Executive Committee members and others within the Committee’s remit, were determinedby the Committee outside the scheduled meetings.

May 2023• Update on external environment from independent advisors• FY 2022/23 incentive outcomes• FY 2023/24 performance targets and incentive awards• BSP 2023 awards, including underpins for Executive Directors• FY 2023/24 senior executive remuneration• Chair fees for FY 2023/24• Approval of Directors’ Remuneration Report FY 2022/23 and 2023 Directors’ Remuneration Policy• Update on share plan dilution• Actions following FY 2022/23 Committee Effectiveness review

November 2023

• Update on external environment from independent advisors• 2023 AGM season shareholder and proxy body feedback• Incentives performance update• All-employee share plan awards 2023
• Committee annual planner

February 2024

• Update on external environment from independent advisors• Incentives performance update• Overview of broader employee reward and proposed engagement with the Global Workforce
Advisory Forum• UK Gender and Ethnicity Pay Gap Report for 2023/24 reporting year
• Update on Executive Committee members’ shareholding guideline compliance• Committee areas of focus for FY 2023/24

March 2024

• Update on external environment from independent advisors• Incentives performance update• FY 2024/25 annual bonus plan proposals and proposed 2024 BSP awards• Approach to Directors’ Remuneration Report FY 2023/24 and shareholder engagement strategy• Feedback from the March 2024 meeting of the Global Workforce Advisory Forum• Review of Committee’s terms of reference

Regular attendees at Committee meetings include the Chair of the Board, the CEO, the Company Secretary, the Chief People Officer,
the VP Head of Reward and representatives of the Committee’s advisors. Other members of the senior management team may attend
Committee meetings from time to time. No one is present when their own remuneration is being discussed.

141

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

Advisors to the Committee
Deloitte was appointed as an independent advisor to the Committee in 2017 and reappointed in 2021 following a competitive tender
process. Deloitte is a founding member of the Remuneration Consultants’ Group (RCG), which is responsible for the development
and maintenance of the voluntary Code of Conduct that clearly sets out the role of executive remuneration consultants and theprofessional standards by which they advise their clients. Fees are charged on a time and expenses basis and totalled £139,500(plus VAT) during FY 2023/24. During the year Deloitte also provided other consulting services (including mergers and acquisitions
and due diligence advice, technology implementation and analytics), tax compliance and advisory services. The Committee is satisfied
that advice received from Deloitte during the year was objective and independent and that all individuals who provided remuneration
advice to the Committee had no connections with Burberry or its Directors that may impair their independence. The Committee
reviewed the potential for conflicts of interest and judged that there were appropriate safeguards against such conflicts.
Linklaters LLP also provided advice to the Committee in relation to the operation of the Company’s share plans, employment law
considerations and compliance with legislation.

Remuneration voting results
The table below shows the results of the latest remuneration-related shareholder votes on the Directors’ Remuneration Report
and the Directors’ Remuneration Policy (both at the 2023 AGM).
AGM voting results

Votes forVotes against

Votes withheld

To approve the Directors’ Remuneration Report for the year ended
1 April 2023

285,752,634(95.60%)13,152,786(4.40%)

18,947

To approve the Directors’ Remuneration Policy

271,202,999(91.02%)

26,745,859(8.98%)

975,510The Committee and I continue to value the input of shareholders to help inform our thoughts on executive remuneration at Burberry.
Going forward, as part of our commitment to build on the constructive dialogue we have established, we look forward to continuing
to engage with you and receiving your support at the AGM in July.
This report has been approved by the Board and signed on its behalf by:

Danuta Gray
Chair, Remuneration Committee
14 May 2024

142

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Report

DIRECTORS’ REPORTThe Directors present their Annual Report and the audited
consolidated Financial Statements of the Company for the year
ended 30 March 2024. For the purposes of the Companies Act
2006, the following are incorporated by reference and shall bedeemed to form part of this Directors’ Report:• Strategic Report on pages 2 to 92• Corporate Governance Statement, which includes the Boardof Directors, the Corporate Governance Report and the
Directors’ Remuneration Report, on pages 93 to 146• Global GHG emissions disclosure on page 43
The Directors consider that the Annual Report and Accounts,
taken as a whole, provide a fair, balanced and understandable
assessment of the Group’s business as necessary forshareholders and wider stakeholders to assess:• development and performance during the year
• its position at the end of the financial year
• strategy• likely developments• any principal risks and uncertainties• how we have engaged with our people and stakeholders
For the purposes of compliance with the Disclosure Guidance
and Transparency Rules 4.1.5R(2) and 4.1.8R, the required
content of the management report can be found in the Strategic
Report together with sections of the Annual Report incorporated
by reference.

Share capital
Details of the issued share capital, together with details of
movement in the issued share capital of the Company during
the year, are shown in note 25 to the Financial Statements.
This is incorporated by reference and deemed to be part of thisreport. The Company has one class of ordinary share of 0.05
pence each (Share), which carries no right to fixed income.
Each Share carries the right to one vote at general meetingsof the Company. The Shares are listed on the Official List andtraded on the London Stock Exchange. No person has any
special rights of control over the Company’s share capitaland all issued shares are fully paid.
As at 30 March 2024, the Company had 363,815,743 Shares inissue, including 5,232,720 held in treasury. At the AGM in 2023,
shareholders approved resolutions to allot Shares up to an
aggregate nominal value of £63,036, and to allot Shares forcash other than pro rata to existing shareholders. In order toretain maximum flexibility, resolutions will be proposed toshareholders at this year’s AGM to renew these authorities but
shareholders will be asked to approve an additional resolution
which seeks authority to issue up to an additional 5% of issued
share capital other than pro rata to existing shareholders inconnection with an acquisition or specified capital investment.

Substantial shareholdings
As at 30 March 2024, the Company had been notified under
Rule 5 of the Disclosure Guidance and Transparency Rulesof the following major interests in its issued share capital:
Number of
Shares held

% of total
voting rights1

BlackRock Inc.

27,729,908

6.62

Lindsell Train Limited

21,928,267

5.00

Massachusetts Financial
Services Company

20,668,065

5.10

Schroders plc

19,361,546

5.10

Since 30 March 2024, the Company has received no further
notifications of major interests in its issued share capital.

Interests in own Shares
Details of the Group’s interests in its own Shares are set out
in note 25 to the Financial Statements.

Share buyback
In line with our capital allocation priorities and the authority
granted by the shareholders at the AGM in 2022 and 2023,
we launched a £400 million share buyback programme inJune 2023, which we completed in two tranches: June 2023
to September 2023 and September 2023 to October 2023.
In total, 20,504,089 Shares with a nominal value of 0.05p eachwere purchased and cancelled. Further details of the sharebuyback can be found in note 25 to the Financial Statements.
The authority granted by shareholders at the 2023 AGM willremain in place until a new authority is granted by shareholders
at the 2024 AGM, or 12 October 2024, whichever is the earlier.
No further purchases of Shares by the Company have been
made since the programme described above was completed
and the date of this report.

Transfer of Shares
There are no specific restrictions on the size of holding oron the transfer of Shares. The Directors are not aware of any
agreements between holders of Shares that may result in
restrictions on the transfer of securities or voting rights.
The Directors have no current plans to issue Shares other thanin connection with employee share plans.

VotingEach Share carries one vote at general meetings of theCompany. Any Shares held in treasury have no voting rights.
A shareholder entitled to attend, speak and vote at a general
meeting may exercise their right to vote in person, by proxy, or,in relation to corporate members, by corporate representatives.
To be valid, notification of the appointment of a proxy must be
received not less than 48 hours before the relevant general
meeting at which the person named in the Form of Proxy proposes
to vote. The Directors may in their discretion determine that, in
calculating the 48-hour period, no account be taken of any partof a day which is not a working day. Employees who participate
in the Share Incentive Plan (SIP) whose Shares remain in the
Burberry Group plc SIP Trust (SIP Trust) may give directions to
the trustees to vote on their behalf by way of a Form of Direction.

Dividend
The Directors recommend that a final dividend of 42.7p per
Share (FY 2022/23: 44.5p) in respect of the year ended
30 March 2024 be paid on 2 August 2024 to those persons
on the Register of Members as at 28 June 2024.
An interim dividend of 18.3p per Share was paid to shareholders
on 26 January 2024 (FY 2022/23: 16.5p). This will make a total
dividend of 61.0p per Share in respect of the financial year to
30 March 2024. The aggregate dividends paid and recommended
in respect of the year to 30 March 2024 total £217 million(FY 2022/23: £230 million).
The Burberry Group plc ESOP Trust has waived all dividends
and future dividends payable by the Company in respect of the
Burberry Shares it holds until the Company is notified otherwise.
In addition, the SIP Trust has waived all dividends payable by
the Company during FY 2023/24 in respect of unappropriatedBurberry Shares it holds.

1. As at the date of notification to the Company.

143

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Corporate Governance Statement | Directors’ Report

Revenue and profit

Independent auditor

Revenue from continuing business during the year amounted
to £2,968 million (FY 2022/23: £3,094 million). The adjusted
operating profit for the year was £418 million (FY 2022/23:£634 million).

In accordance with section 418(2) of the Companies Act 2006,
each of the Company’s Directors in office at the date of thisreport confirms that:

The profit for the year attributable to equity holders of theCompany was £270 million (FY 2022/23: £490 million), a year
on year decrease of 45% predominantly related to the reductionof 170 bps in gross margin, an increase of 7% in operating costs
and an increase in the tax rate to 29.2%.

Financial instruments and risks
The Group’s financial risk management objectives and policies
are set out within note 27 of the Financial Statements. Note 27
also details the Group’s exposure to foreign exchange, shareprice, interest, credit, capital and liquidity risks. This note isincorporated by reference and deemed to form part of this report.

Going concern and viability
The going concern statements for the Group and the Company
are set out on pages 166 and 215 of the Financial Statements
and are incorporated by reference and shall be deemed to bepart of this report. The Directors’ assessment of the prospects
and viability of the Group over the next three years is set out in
the Strategic Report on pages 91 and 92. The Risk and Viability
Report can be found on pages 83 to 92.
The Directors considered it appropriate to adopt the going
concern basis of accounting when preparing the financial
statements.

Significant contracts – change of control
Pursuant to the Companies Act 2006, the Directors disclose
that, in the event of a change of control, the Company’s
borrowings under the Group’s currently undrawn £300 million
Revolving Credit Facility, dated 26 July 2021, could
become repayable.
On 3 April 2017, Burberry entered into an exclusive licensing
agreement with Coty pursuant to which Coty develops,
manufactures, markets, distributes and sells Burberry Beauty
products. The agreement took effect in October 2017, fromwhich time ongoing royalty payments have been payable toBurberry. Pursuant to the Companies Act 2006, the Directors
disclose that a change in control of Burberry will, in limited
circumstances, result in Coty having a right of terminationof the licence agreement.
A small number of leases contain certain rights that may entitle
landlords to terminate or approve continuation of the leases
in the event that a Burberry subsidiary is transferred out of theGroup or there is a change of control of Burberry Group plc;
none of these is considered to be significant in terms of thepotential impact on the business as a whole.
There are no arrangements between the Company and its
Directors or employees providing for compensation for lossof office or employment that occurs specifically because of atakeover, merger or amalgamation. There are provisions in the
Company’s share plans, which could result in options or awards
vesting or becoming exercisable on a change of control. For
further information on the change of control provisions in the
Company’s share plans refer to the Directors’ Remuneration
Policy, which was approved by shareholders at the AGM on
12 July 2023. This is set out in full in the Directors’ Remuneration
Report, which can be found in the Annual Report 2022/23
on Burberryplc.com.

144• so far as the Director is aware, there is no relevant audit
information of which the Company’s external auditor is unaware• the Director has taken all appropriate steps to ensure they
are aware of any relevant audit information, and to establishthat the Company’s external auditor is aware of that information
The Group’s current external auditor is EY and note 7 of
the Financial Statements states their fees both for audit andnon-audit work. EY was appointed as the external auditor of
the Company at the 2020 AGM following an independent audit
tender. A resolution to re-appoint EY as external auditor to theCompany for FY 2024/25 will be proposed at the 2024 AGM.
The Independent Auditor’s Report starting on page 149 sets out
the information contained in the Annual Report which has been
audited by the external auditor.

Employee share plans and share ownership
The Company is committed to employee share ownershipwith two all-employee share plans available to employees at alllevels of the organisation. Further details of these share plans
are set out in the Directors’ Remuneration Report on page 129.
The Group intends to operate these all-employee share plans
during FY 2024/25 to grant awards of free Burberry Shares(or equivalent cash-based awards as appropriate) to all eligible
employees globally, and to invite eligible employees, where
possible, to participate in the ShareSave scheme. The Directors
review the operation of these plans to ensure that they effectively
support the Group’s strategy and encourage greater alignment
by employees with the Group’s performance. Details of employee
share plans are set out in note 28 to the Financial Statements.

Employee engagement
Burberry is an open and inclusive employer that strives toopen spaces for our people so they can express their creativity
and grow both personally and professionally. Our colleagues
represent 132 nationalities across 33 countries and territories
and we are proud of the diversity of our people and the richvariety of skills and experiences they bring to our brand fromthe many cultures and backgrounds they represent. We continue
to focus on evolving strategies for attracting and retaining
diverse top talent within the business that promote our culturalvalues and ensure diverse representation across the business.
Further details about our people and our commitment todiversity, equity and inclusion can be found on pages 48 to 51.
Pages 80 to 82 demonstrate how the Directors have had regard
towards employee interests and the principal decisions takenby the Company during the financial year.

Burberry Annual Report 2023/24

Stakeholder engagement

Directors’ Share interests

Reflecting the importance of our stakeholders, an explanationof the steps taken by the Directors to foster business relationships
with partners, including suppliers, customers and otherstakeholders, is set out on pages 80 to 82.

The interests in shares of the Directors holding office as at
30 March 2024 are shown within the Directors’ Remuneration
Report on pages 125 to 142. There were no changes to thebeneficial interests of the Directors between the period
30 March 2024 and 14 May 2024.

Global GHG emissions
The Directors understand they have a responsibility to consider
the impact on the environment and the likely consequencesof any business decisions in the long term. Disclosure is inline with the FCA’s requirements for climate-related financial
disclosures and consistent with the TCFD recommendations
as set out on pages 66 to 79.

Health and safety
The Company has a global Health and Safety Policy approved by
the CEO on behalf of the Board. A safety-first approach is firmly
embedded in Burberry’s values and this approach was strongly
reinforced and measured across all our operational activities.
Governance of our Health and Safety strategy is maintained
through a Global Health and Safety Committee, which is chairedby the General Counsel. Health and safety issues are also
considered by the Risk Committee and Audit Committee.
Each region has a local health and safety committee which
reports to the regional president. These committees assist with
the implementation of our Health and Safety strategy and help
to ensure all local regulatory and Burberry standards areachieved and maintained.
Strategic direction on health and safety matters is provided
by the Director of Health and Safety who is supported bya global team. In line with industry best practice, our healthand safety goals and objectives are set each year to continually
analyse our performance and support a process forcontinuous improvement.
Our unannounced global assurance audit programme continues
to measure health and safety performance within our managed
operations at a set frequency and tracks improvement actions
and risk reduction strategies through to closure.

Political donations
The Company did not make any political donations during theyear in line with its policy (FY 2022/23: £nil). In keeping with theGroup’s approach in prior years, shareholder approval is beingsought at the forthcoming AGM, as a precautionary measure,for the Company and its subsidiaries to make donations and/or
incur expenditure, which may be construed as political by thewider definition of that term included in the relevant legislation.
Further details are provided in the Notice of Meeting (the Notice).

Directors
The names and biographical details of the Directors as at
the date of this report are set out on pages 95 to 99 and areincorporated by reference into this report. With regard to theappointment and resignation of Directors, the Company follows
the Code, and is governed by its Articles of Association, theCompanies Act 2006 and related legislation. At the 2024 AGM,
all Directors, with the exception of Debra Lee, will stand forelection or re-election as appropriate. The Notice sets out thecontributions and reasons for the election or re-election of each
Director. The service agreements of the Executive Directors andthe letters of appointment of the Non-Executive Directors areavailable for inspection at the Company’s registered office onrequest. Brief details of these are also included on page 137of the Directors’ Remuneration Report. For information on the
Directors’ professional development, see page 110.

Directors’ powers and responsibilities
Subject to the Company’s Articles of Association, the Companies
Act 2006 and any directions given by special resolution, thebusiness of the Group will be managed by the Board, which
may exercise all the powers of the Group, including powers
relating to the issue and/or buying back of Shares by the Group(subject to any statutory restrictions or restrictions imposed byshareholders at the AGM).

Directors’ insurance and indemnities
The Company maintains Directors’ and Officers’ liability
insurance, which gives cover for legal actions brought against
its Directors and Officers. In accordance with section 236
of the Companies Act 2006, qualifying third-party indemnity
provisions are in place for the Directors in respect of liabilities
incurred as a result of their office, to the extent permitted bylaw. Both the insurance and indemnities applied throughout thefinancial year ended 30 March 2024, and through to the dateof this report.

Branches
In accordance with the Companies Act 2006, the Group
discloses below the subsidiary companies that have branches
outside the UK:• Burberry Limited: Hong Kong S.A.R., China and Republic of Korea• Burberry Brasil Comércio de Artigos de Vestuárioe Acessórios Ltda: Brazil• Burberry Saudi Company Limited: Kingdom of Saudi Arabia• Burberry Qatar W.L.L.: Qatar• Burberry (Spain) Retail S.L.: Portugal• Burberry (Shanghai) Trading Co., Ltd: Mainland China

Annual General Meeting (AGM)
The AGM of the Company will be held at 10:30am on Tuesday
16 July 2024 at Conrad London St. James, 22-28 Broadway,
London, SW1H 0BH. The Notice of this year’s AGM is available
to view on the Company’s website at Burberryplc.com.
The Directors consider that each of the proposed resolutions
to be considered at the AGM is in the best interests of theCompany and its shareholders, and is most likely to promote thesuccess of the Company for the benefit of its shareholders as awhole. The Directors unanimously recommend that shareholders
vote in favour of each of the proposed resolutions, as the
Directors intend to do in respect of their own shareholdings.

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Corporate Governance Statement | Directors’ Report

Amendments to Articles of Association
The Company’s Articles of Association were adopted at the 2021 AGM. No changes to the Articles of Association are being proposedat this year’s AGM.

Disclosures pursuant to Listing Rule 9.8.4
Listing Rule

Description of Listing Rule

Reference

9.8.4(12) and (13)Waivers of dividends

See Dividends paragraph on page 143

The Strategic Report from pages 2 to 92 and Directors’ Report from pages 143 to 146 have been approved by the Board on 14 May 2024
in accordance with the Companies Act 2006.
By order of the Board

Gemma Parsons
Company Secretary
14 May 2024
Burberry Group plc
Registered Office: Horseferry House, Horseferry Road, London SW1P 2AW
Registered in England and Wales
Registered number: 03458224

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Burberry Annual Report 2023/24

FINANCIAL STATEMENTS
Statement of Directors’ Responsibilities

148

Independent Auditor’s Report to the Membersof Burberry Group plc

149

Group Income Statement

160

Group Statement of Comprehensive Income

161Group Balance Sheet

162

Group Statement of Changes in Equity

163

Group Statement of Cash Flows

164

Notes to the Financial Statements

165

Five-Year Summary

209

Company Balance Sheet

212

Company Statement of Changes in Equity

213

Notes to the Company Financial Statements

214

Shareholder Information

221

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Burberry Annual Report 2023/24

Financial Statements | Statement of Directors’ Responsibilities

STATEMENT OF DIRECTORS’ RESPONSIBILITIESThe Directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the financial statements inaccordance with applicable laws and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have
prepared the Group consolidated financial statements in accordance with the UK-adopted International Accounting Standards andthe Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, comprising FRS 101 ‘Reduced Disclosure Framework’ and applicable law). Under company law the Directors
must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of theGroup and the Company and of the profit or loss of the Group and the Company for that year. In preparing these financial statements
the Directors are required to:• select suitable accounting policies and then apply them consistently;• state whether applicable UK-adopted International Accounting Standards have been followed for the Group financial statements
and United Kingdom Accounting Standards, comprising FRS 101, have been followed for the Company financial statements,
subject to any material departures disclosed and explained in the Group and parent Company financial statements respectively;• make judgements and accounting estimates that are reasonable and prudent;• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information; and• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company willcontinue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group andCompany’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company
and enable them to ensure that the financial statements and the Directors’ Remuneration Report comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Directors consider that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the informationnecessary for shareholders to assess the Group and the Company’s position and performance, business model and strategy.
Each of the Directors, whose names and functions are listed on pages 157 to 162 confirm that, to the best of their knowledge:• the Company financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards, comprising FRS 101 ‘Reduced Disclosure Framework’, and applicable law), give atrue and fair view of the assets, liabilities, financial position and profit of the Company;• the Group financial statements, which have been prepared in accordance with the UK-adopted International AccountingStandards, give a true and fair view of the assets, liabilities, financial position and profit of the Group; and• the Strategic Report includes a fair review of the development and performance of the business and the position of the Group andthe Company, together with a description of the principal risks and uncertainties that it faces.
These statements were approved by the Board on 14 May 2024 and signed on its behalf by:

Jonathan Akeroyd
Chief Executive Officer

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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF BURBERRY GROUP PLC
OpinionIn our opinion:• Burberry Group plc’s Group financial statements and Company financial statements (the “financial statements”) give a true and fairview of the state of the Group’s and of the Company’s affairs as at 30 March 2024, and of the Group’s profit for the 52-weekperiod then ended;• the Group financial statements have been properly prepared in accordance with UK-adopted International Accounting Standards;• the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Burberry Group plc (the ‘Company’) and its subsidiaries (the ‘Group’) for the 52-weekperiod ended 30 March 2024 which comprise:Group

Company

Balance sheet as at 30 March 2024

Balance sheet as at 30 March 2024

Income statement for the 52-week period then ended

Statement of changes in equity for the 52-week period
then ended

Statement of comprehensive income for the 52-week period
then ended

Related notes A to M to the financial statements, including asummary of material accounting policies

Statement of changes in equity for the 52-week period
then ended
Statement of cash flows for the 52-week period then ended
Related notes 1 to 32 to the financial statements, including asummary of material accounting policies
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and
UK-adopted International Accounting Standards. The financial reporting framework that has been applied in the preparation of theCompany financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure
Framework” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of ourreport. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence
We are independent of the Group and Company in accordance with the ethical requirements that are relevant to our audit of thefinancial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Company and we remain
independent of the Group and the Company in conducting the audit.

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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group and Company’s
ability to continue to adopt the going concern basis of accounting included:• In conjunction with our walkthrough of the Group’s financial statement close process, we confirmed our understanding ofmanagement’s going concern assessment process and engaged with management early to understand and assess the key
assumptions made in their assessment.
• We checked the logic and arithmetical integrity of management’s going concern model that includes the cash forecasts for thegoing concern assessment period covering the period up to 27 September 2025.
• We considered the appropriateness of the revenue and operating expense assumptions used to calculate the cash forecasts underbase case and severe but plausible case scenarios. In light of challenging trading conditions, we specifically challenged
management’s plausible downside case scenario to assess if it was sufficiently severe for the going concern assessment.
• We reviewed the Group’s debt agreements for any conditions precedent outside of management’s control and also reviewed
forecast compliance with covenant requirements in either the base or severe but plausible downside case scenarios during thegoing concern assessment period.
• We agreed the 30 March 2024 cash and cash equivalents balance included in the going concern assessment to the Group’s year
end cash and cash equivalents balance.
• We assessed the reasonableness of the cashflow forecasts included in the going concern assessment by analysing management’s
historical forecasting accuracy and understanding the potential impact of principal risks such as geopolitical instability, global
consumer demand and the impact of climate change reflected in the forecasts.
• We evaluated the key assumptions by searching for contrary evidence to challenge these assumptions, including third party sector
forecasts and analyst expectations. Further, we tested these assumptions for consistency with the budget approved by the Board.
• We also challenged the measurement and completeness of the downside scenario modelled by management, whether the risks
considered are sufficiently severe, and how these compare with the principal risks and uncertainties of the Group.
• We considered the mitigating factors available and not included in the severe but plausible downside scenario that are within
control of the Group. This included review of the Group’s non-operating cash outflows and evaluating the Group’s ability to control
these outflows as mitigating actions if required.
• We reviewed the borrowings of the Group and noted that management include the repayment of the sustainability bond without
refinancing in the severe but plausible scenario as the bond is repayable within the going concern period.
• We considered whether the Group’s forecasts in the going concern assessment were consistent with other forecasts used by theGroup in its accounting estimates, including goodwill impairment, retail store impairment and deferred tax asset recognition.
• We performed reverse stress testing to identify the magnitude of decline in revenue that would lead to the Group utilising all
liquidity during the going concern assessment period and we have considered the likelihood of such a decline.
• We reviewed activity in the subsequent events period to assess for contrary indicators.
• We reviewed the Group’s going concern disclosures included in the Annual Report to assess that they were accurate, sufficiently
detailed and in conformity with the reporting standards.
We observe that in management’s base case and severe but plausible downside scenario, there is headroom without taking thebenefit of identified mitigations.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group and Company’s ability to continue as a going concern for a period
up to 27 September 2025.
In relation to the Group and Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothingmaterial to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of
this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Groupand the Company’s ability to continue as a going concern.

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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

Overview of our audit approach
Audit scope

We performed an audit of the complete financial information of four components and audit procedures on
specific balances for a further four components.
The components where we performed full or specific audit procedures accounted for 79% of profit before
tax (on an absolute basis), 77% of Revenue and 75% of Total assets.

Key audit matters

Valuation of finished goods inventory provision.
Impairment and impairment reversals of retail store right-of-use assets and related property,
plant and equipment.
Provision for uncertain tax positions.

Materiality

Overall Group materiality of £19.2m which represents 5% of profit before tax.

An overview of the scope of the Company and Group audits
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scopefor each component within the Group. Taken together, this enables us to form an opinion on the consolidated financial statements.
We take into account size, risk profile, the organisation of the Group and effectiveness of Group-wide controls, changes in thebusiness environment, the potential impact of climate change and other factors such as recent internal audit results when assessing
the level of work to be performed at each component.
In assessing the risk of material misstatement to the Group financial statements, and to ensure we had adequate quantitative
coverage of significant accounts in the financial statements, we selected eight components covering entities within the
United Kingdom, Mainland China, Japan, South Korea, the United States and Hong Kong S.A.R., China, which represent the principal
business units within the Group.
Of the eight components selected, we performed an audit of the complete financial information of four components (“full scope
components”) which were selected based on their size or risk characteristics. For the remaining four components (“specific scope
components”), we performed audit procedures on specific accounts within that component that we considered had the potential forthe greatest impact on the significant accounts in the financial statements either because of the size of these accounts or theirrisk profile.
The reporting components where we performed audit procedures accounted for 79% of the Group’s profit before tax (on an absolutebasis) (2023: 91% of the Group’s profit before tax on an absolute basis), 77% (2023: 78%) of the Group’s revenue and 75% (2023: 80%)of the Group’s total assets. For the current year, the full scope components contributed 79% of the Group’s profit before tax (on an
absolute basis) (2023: 91% of Group’s profit before tax on an absolute basis), 57% (2023: 74%) of the Group’s revenue and 57%(2023: 77%) of the Group’s total assets. The specific scope components contributed 20% (2023: 4%) of the Group’s revenue and 18%(2023: 3%) of the Group’s total assets. The audit scope of these components may not have included testing of all significant
accounts of the component but will have contributed to the coverage of significant accounts tested for the Group.
Of the remaining components that together represent 21% of the Group’s profit before tax (on an absolute basis) (2023: 9% ofadjusted profit before tax on an absolute basis), none are individually greater than 4% (2023: 5%) of the Group’s profit before tax(on an absolute basis). For these components, we performed other procedures, including analytical review procedures, testing of
consolidation journals and intercompany eliminations and foreign currency translation recalculations to respond to any potential
risks of material misstatement to the Group financial statements.

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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

The charts below illustrate the coverage obtained from the work performed by our audit teams.

Profit before tax(on an absolute basis)

79%

0%

21%

Revenue

57%

Full scope components

20%

23%

Specific scope components

Total assets

57%

18%

25%

Other procedures

Changes from the prior year
We decreased the number of full scope components from six to four in the current year and increased the number of specific scope
components from two to four. This reflects the change in contribution to the Group’s results across these entities and that a greaternumber of procedures are directly performed by the primary audit team.

Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of thecomponents by us, as the Group audit engagement team, or by component auditors from other EY global network firms operating
under our instruction. Of the four full scope components, audit procedures were performed on three of these directly by the Groupaudit team. For the one full scope and three specific scope components, where the work was performed by component auditors,
we determined the appropriate level of involvement to enable us to determine that sufficient audit evidence had been obtained as abasis for our opinion on the Group as a whole.
The Group audit team followed a programme of planned physical visits to the component teams in Mainland China and Hong Kong
S.A.R., China, and virtual site visits for the component teams in South Korea and Japan. The virtual visits involved video calls withlocal management, including members of supply chain and marketing teams depending on the component, and with the local EY
component teams. These visits were designed to ensure that the Senior Statutory Auditor, physically or virtually, visited all those fulland specific scope audit locations not audited by the Group audit team at least once during the year. During all of these physical andvirtual visits, we held discussions on the audit approach and understood any issues arising from their work and were responsible forthe scope and direction of the audit process. We reviewed the component team’s working papers to validate that the required
procedures had been performed to the appropriate quality. We also virtually attended year end closing meetings at all components
and interacted regularly with the component teams throughout the year.
As the Group audit team, we performed the audit for the components in the United Kingdom and the United States. We also met inperson where possible, or virtually, with local management for these components. This, together with the additional procedures
performed at Group level, gave us appropriate evidence for our opinion on the Group financial statements.

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Climate change
Stakeholders are increasingly interested in how climate change will impact the Group. The Group has determined that the mostsignificant future impacts from climate change on its operations will be from climate transition risks, specifically market risks
associated with changing consumer preferences in a lower carbon economy. These are explained on pages 66 to 79 in the required
Task Force On Climate Related Financial Disclosures, and on pages 85 to 90 in the principal risks and uncertainties. The Group has
also explained their climate commitments on pages 30 to 33. All of these disclosures form part of the “Other information,” rather than
the audited financial statements. Our procedures on these unaudited disclosures therefore consisted solely of considering whether
they are materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise
appear to be materially misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit, we assessed the potential impacts of climate change on the Group’s business and any
consequential material impact on its financial statements.
The Group has explained in their Basis of Preparation note how they have reflected the impact of climate change in their financial
statements, including how this aligns with their commitments in their sustainability strategy. There are no significant judgements or
estimates relating to climate change.
Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating management’s
assessment of the impact of climate risk and their climate commitments, specifically on the finished goods inventory provision,
impairment of retail store right-of-use assets and related property, plant and equipment and going concern. We have assessed
whether these risks have been appropriately reflected in asset values, where values are determined through modelling future cash
flows, this primarily being impairment assessments following the requirements of UK-adopted International Accounting Standards.
As part of this evaluation, we performed our own risk assessment, supported by our climate change internal specialists and senior
members of the audit team. This included meetings with the Group’s Sustainability and Group Financial Reporting teams, a specificclimate change risk workshop and a review of peer disclosures and sector guidance on climate change to determine the risks ofmaterial misstatement in the financial statements from climate change which needed to be considered in our audit.
We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability andassociated disclosures. Where considerations of climate change were relevant to our assessment of going concern, these aredescribed above.
Based on our work, whilst we have not identified the impact of climate change on the financial statements to be a standalone key
audit matter, we have considered the impact on the following key audit matters: valuation of finished goods inventory provision; andimpairment and impairment reversals of retail store right-of-use assets and related property, plant and equipment. Details of the
impact, our procedures and findings are included in our explanation of key audit matters below.

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Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period, and include the most significant assessed risks of material misstatement (whether or not due tofraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of
resources in the audit and directing the efforts of the engagement team. These matters were addressed in the context of our audit of
the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Risk

Our response to the risk

Valuation of finished goods
inventory provision

The Group audit team, full scope components teams and specificscope component team performed the audit procedures over theGroup’s inventory valuation. The principal procedures performed
are described below.

As described in the Audit
Committee Report (page 118),
Accounting Policies (page 168),
and Note 17 of the Consolidated
Financial Statements (page 189),
management raises a finishedgoods inventory provision toreflect where the expected net
realisable value is lower thanthe carrying value of finishedgoods inventory at the balance
sheet date. The Group has£73m of inventory provisions,representing 12.6% of the grossvalue of inventory of £580m as
at 30 March 2024. Of the net
inventory of £507m, £475m
relates to finished goods.
The Group determines theinventory provision considering
the aging of inventory by season,
identifying problem inventory andconsidering historical loss rates,
and future sales forecasts andthe expected channel by which
the inventory will be exited. This
process is inherently judgmental
and there is therefore potential
for management bias in relation
to its allocation of inventory
to certain sales channels aswell as in relation to future
sales forecasts.

We performed a walkthrough of the inventory provisioning
process, and identified and understood the design of key controls.
We evaluated the appropriateness of the Group’s inventory
provisioning policy. We assessed the inventory provisioning
model for each component for consistency with the Group’s
accounting policy.
We tested the integrity and accuracy of the provisioning modeland inputs (such as loss rates, seasonality and categorisation of
inventory), considering the source of information being usedby management.
Applying professional scepticism and in light of recent trading
conditions, we performed sensitivity analysis on management’s
expected sell through and loss rates of inventory.
We used inventory movement data for the current year andanalysed it to consider the inventory composition by season andproduct type. We used this data to develop an expectation andchallenged management on any outliers identified.
We understood the planned sales channels and exit routes forproblem stock and challenged whether these were consistent
with prior periods, the overall sales profile of the Group and theBoard-approved forecasts used elsewhere across the Group.
We considered whether there was any evidence of management
bias in the exit routes and future sales forecasts used.
We performed analytical procedures around key assumptions andcorroborated to our work performed across other accounts to
identify and consider whether any contrary evidence existed.
We also used data to corroborate explanations from management
and to identify any contrary evidence related to the assumptions
used by management in identifying slow-moving inventory or
determining exit routes. We performed sensitivity analysis toassess the significance and risk of changed assumptions on theprovision, primarily being the sell through, exit route and loss
rates applied. This included considering the potential impact
climate change may have on inventory provisioning.
We reviewed disclosures in the financial statements for appropriateness.

154

Key observations communicated to
the Audit Committee

We are satisfied thefinished goods inventory
provisions are appropriate
and the Group’s disclosures
are appropriate.

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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

Key audit matters continued
Risk

Our response to the risk

Impairment and impairment
reversals of retail store rightof-use assets and related
property, plant and equipment

Our procedures on the carrying value of retail store right-of-use
assets and related property, plant and equipment were performed
centrally by the Group team.

As described in the Audit
Committee Report (page 118),
Accounting Policies (page 168),
and Notes 13 and 14 of theConsolidated Financial
Statements (pages 186 to 187),
management assess the retailstore right-of-use assets andrelated property, plant andequipment for impairment
charges and reversals ofprevious impairment charges.
The Group has £1,013m ofright-of-use assets and £406m
of property, plant and equipment
as at 30 March 2024.
In the 52 weeks to 30 March 2024
there was a net impairment
charge of £14m.
There is judgement and estimation
uncertainty involved in determining
the store forecast cash flows
to measure impairment charges
and reversals, in particular,
the revenue growth and profit
margin assumptions in lightof the current challenging
market conditions.

Our procedures included, among others, performing a walkthroughof the retail store impairment process and evaluating the designof controls.
We reviewed and challenged the appropriateness of the Group’s
impairment policy.
We also reviewed board minutes and met with regional commercial
finance teams and general counsel to determine if any contraryevidence existed in relation to the future plans for stores.
Management considered whether indicators of impairment
charges or reversals were present for the Group’s retail store
portfolio based on the Group’s latest forecast. We assessed thecompleteness of the factors considered and assessed theaccuracy of the forecasted information in conjunction with our
testing of the Group’s forecasts further outlined below.
For the stores identified with indicators of impairment charge orreversal, the Group prepared value-in-use impairment models.
Our procedures over the value-in-use calculations included:

Key observations communicated to
the Audit Committee

We are satisfied that theconsideration of indicatorsof impairment, value-in-use
impairment model
methodology, significant
underlying assumptions
and judgements applied
are reasonable and support
management’s conclusion
to recognise a net
impairment charge totalling£14m against the retailstore right-of-use assets
and related property, plantand equipment.
We are also satisfied
with the disclosure andclassification of theimpairment charges.

• Assessing the methodology against the requirements of IAS 36
Impairment of Assets;• Testing the integrity of the model and data inputs used backto source data, for example agreeing store right-of-use asset
and related property, plant and equipment values back to
accounting records;• Involving our valuations specialists to assess theappropriateness of the discount rate used;• Challenging assumptions used in cash flow forecasts such as
revenue growth and margin assumptions against historicalresults, and third-party luxury sector forecasts;• Performing sensitivity analysis on key assumptions and stresstesting calculations for stores most at risk of impairment;• Challenging whether cash flow forecasts adequately factoredin known costs associated with physical and transition
climate-related risks and any cashflows required to meet
Burberry’s publicly stated climate commitments; and• Assessing the disclosures in the financial statements,
including the requirement to disclose sensitivities where areasonably possible change in a key assumption would resultin a material change to the impairment charge or reversal
recorded. We tested management’s sensitivity analysis andre-calculated the sensitivities disclosed as a result of changing
revenue assumptions.

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Key audit matters continued
Risk

Our response to the risk

Provision for uncertain
tax positions

Our procedures on the uncertain tax position provisions were
performed centrally by the Group team, supported by subject
matter specialists and supported by overseas teams withexpertise in local tax regulations where appropriate.

As described in the Audit
Committee Report (page 118),
Accounting Policies (page 168), andNote 9 of the Consolidated Financial
Statements (page 181 to 182), theGroup is subject to tax regulationin multiple jurisdictions and thecentralised operating structure of
the Group requires management
to exercise judgement in making
determinations as to the amountof tax that is payable.
The Group is subject to tax
authority audits and has a numberof open tax enquiries in multiple
jurisdictions at any point in time.
As a result, the Group hasrecognised a number ofprovisions against uncertain tax
positions, the valuation of which
requires significant assumptions
and judgement. We focused on
this area due to the complexity,
subjectivity, quantification of theprovision and the judgement
around the trigger for recognition
or release impacting the provisionand the effective tax rate.

Our procedures included:• Performing a walkthrough of the tax provisioning process
and identifying key controls. We also evaluated theappropriateness of the Group’s transfer pricing anduncertain tax provisioning policies;

Key observations communicated to
the Audit Committee

We are satisfied thatmanagement’s judgements
in relation to the extent ofprovisions for uncertain tax
positions are appropriate.
We are also satisfied thatthe tax disclosures areappropriate.

• Meeting with tax management to understand the Group’s
cross-border transactions, status of all significant matters,
including those provided for, and any changes to management’s
judgements in the year;• Reading correspondence with tax authorities and external
advisors to inform our assessment of recorded estimates andevaluate the completeness of the provisions recorded, directly
engaging with external advisors where appropriate. For themost material case, we met external advisors to understand the
key judgements in the case, and utilised relevant internal
specialists. We requested, received, and reviewed a letter
directly obtained from management’s external legal counsel;• Independently assessing management’s significant
assumptions and judgements to record or release provisions
following tax audits, settlements and the expiry of statuteof limitations;• Testing the accuracy of the calculation of the year end
provisions by inspecting underlying documentation andsupporting schedules; and• Evaluating the adequacy of tax disclosures.

Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on theaudit and in forming our audit opinion.

Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence theeconomic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of
our audit procedures.
We determined materiality for the Group to be £19.2 million (2023: £30 million), which is 5.0% (2023: 4.7%) of profit before tax.
We believe that profit before tax provides us with the most relevant performance measure for the stakeholders of the Group, hence it
has been selected as the benchmark.
We determined materiality for the Company to be £22.3 million (2023: £21.5 million), which is 1% (2023: 1%) of total assets. For any
Company balances that are consolidated into the Group financial statements, an allocation of Group performance materiality was used.

• Profit before tax - £383 million
Basis• Materiality of £19.2m (5.0% of Profit before tax)
Materiality

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Materiality continued
During the course of our audit, we reassessed initial materiality based on forecasts provided by management. Our final assessment
reflected the actual reported performance for the period.

Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level
the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement wasthat performance materiality was 75% (2023: 75%) of our planning materiality, namely £14.4m (2023: £22.5m). We have set
performance materiality at this percentage due to our assessment of the Group’s overall control environment and the likelihood of
undetected misstatements.
Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts isundertaken based on a percentage of total performance materiality. The performance materiality set for each component is basedon the relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at thatcomponent. In the current year, the range of performance materiality allocated to components was £3m to £13m (2023: £4m
to £20m).

Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £1.0m (2023: £1.5m),
which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on
qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light ofother relevant qualitative considerations in forming our opinion.

Other information
The other information comprises the information included in the annual report set out on pages 2 to 146, including Strategic Report
and Corporate Governance Statement, other than the financial statements and our auditor’s report thereon. The directors are
responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated inthis report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there
is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with theCompanies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:• the information given in the strategic report and the directors’ report for the financial year for which the financial statements areprepared is consistent with the financial statements; and• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Company and its environment obtained in the course of theaudit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report toyou if, in our opinion:• adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received frombranches not visited by us; or• the Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with theaccounting records and returns; or• certain disclosures of directors’ remuneration specified by law are not made; or• we have not received all the information and explanations we require for our audit.

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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate
Governance Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance Codespecified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit:• Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 144;
• Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period isappropriate set out on page 91;• Director’s statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets its
liabilities set out on page 93;• Directors’ statement on fair, balanced and understandable (FBU) set out on page 148;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 123;
• The section of the annual report that describes the review of the effectiveness of risk management and internal control systems
set out on page 123; and• The section describing the work of the audit committee set out on pages 118 to 121.

Responsibilities of directors
As explained more fully in the Directors’ Responsibilities Statement set out on page 148, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the
directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group and Company’s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlessthe directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thesefinancial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due tofraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example,
forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of theCompany and management. Our approach included the following:• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group, and determined thatthe most significant frameworks which are directly relevant to specific assertions in the financial statements are those that
relate to the reporting framework (UK adopted International Accounting Standards, UK GAAP, the Companies Act 2006 andthe UK Corporate Governance Code) and the relevant tax laws and regulations in the jurisdictions in which the Group operates.
In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of
the amounts and disclosures in the financial statements, being the Listing Rules of the UK Listing Authority, and those laws andregulations relating to health and safety, employees, environmental, social and anti-bribery and corruption practices.
• We understood how the Group is complying with those frameworks by making enquiries of management, including internal audit,
those responsible for legal and compliance procedures, and the company secretary. We corroborated our enquiries through ourreview of Board minutes and papers provided to the Audit Committee, and observation in Audit Committee meetings, as well as
consideration of the results of our audit procedures across the Group.

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Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud continued• We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur,and met with finance and operational management from various parts of the business to understand where it considered there wassusceptibility to fraud. We also considered the current challenging trading conditions and performance targets and their potential
to influence management to manage earnings or influence the perceptions of analysts. We have determined there is a risk of fraudassociated to finished goods inventory provisions and a risk of management override in manual revenue journals that do not follow
the expected process. We considered the policies, processes and controls that the Group has established to address the risks
identified, including the design of controls over finished goods inventory provisions and each significant revenue stream. We also
considered the controls that the Group has that otherwise prevent, deter and detect fraud, and how senior management monitorsthese controls. We performed audit procedures to address each identified fraud risk. These procedures were designed to provide
reasonable assurance that the financial statements as a whole are free from material misstatement due to fraud or error.
• Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations,
including providing specific instructions to full and specific scope component teams and, where necessary, using relevant
specialists. Our procedures included journal entries testing, with a focus on manual journal entries, consolidation journal entries
and journal entries indicating large or unusual transactions using data analytics. We based this testing on our understanding of thebusiness, enquiries of management, including internal audit, legal and other advisors, the company secretary and reading relevant
reports. We performed specific searches derived from forensic investigations experience and leveraged our data analytics
platform in performing our testing. We have also reviewed the whistleblowing reports issued during the year. Any instances of
non-compliance with laws and regulations identified that might have an impact on components were communicated to thecomponent audit teams and considered in our audit approach, if applicable.
• In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with allapplicable requirements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other matters we are required to address• Following the recommendation from the audit committee, we were appointed by the Company at its annual general meeting on
15 July 2020 to audit the financial statements for the Company for the period ending 27 March 2021, and subsequent financial
periods. The period of total uninterrupted engagement including previous renewals and reappointments is four years, covering theperiod ending 30 March 2024.
• The audit opinion is consistent with the additional report to the audit committee.

Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required tostate to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.

Michael Rudberg (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London14 May 2024

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Financial Statements | Group Income Statement

GROUP INCOME STATEMENT
52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

2,968
(959)
2,009
(1,604)13(1,591)
418

3,094
(911)
2,183
(1,572)46(1,526)
657

31
(66)
–
(35)
383
(112)
271

21
(42)
(2)
(23)
634
(142)
492

270
1
271

490
2
492

74.1p
73.9p

126.9p126.3p

£m

£m

383

634

6
6
6

–
–
–
383

(1)
(22)
2
613

Adjusted earnings per share – non-GAAP measure
Basic
Diluted

10
10

74.1p
73.9p

123.1p122.5pDividends per share
Interim
Proposed final (not recognised as a liability at 30 March/1 April)

11
11

18.3p
42.7p

16.5p
44.5p

Note

Revenue
Cost of sales
Gross profit
Operating expenses
Other operating income
Net operating expenses
Operating profit
Financing
Finance income
Finance expense
Other financing charge
Net finance expense
Profit before taxation
Taxation
Profit for the year

3

4

8
5
9

Attributable to:
Owners of the Company
Non-controlling interest
Profit for the year
Earnings per share
Basic
DilutedReconciliation of adjusted profit before taxation:
Profit before taxation
Adjusting operating items:
Cost of sales (income)Net operating expenses (income)
Adjusting financing items
Adjusted profit before taxation – non-GAAP measure

160

10
10

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Financial Statements | Group Statement of Comprehensive Income

GROUP STATEMENT OF COMPREHENSIVE INCOME

Note

Profit for the year
Other comprehensive income1:
Cash flow hedges
Foreign currency translation differences
Tax on other comprehensive income
Other comprehensive (loss)/income for the year, net of tax
Total comprehensive income for the year
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interest

25
25

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

271

492

(3)
(34)
1
(36)
235

1
14
(1)
14
506

234
1
235

504
2
506

1. All items included in other comprehensive income may subsequently be reclassified to profit and loss in a future period.

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Financial Statements | Group Balance SheetGROUP BALANCE SHEET
As at
30 March
2024
£m

As at
1 April
2023
£m

12
13
14
15
16

267
406
1,013
208
52
1,946

248
376
950
197
52
1,823

17
16
18

507
340
2
122
441
12
1,424
3,370

447
307
7
76
1,026
–
1,863
3,686

20
21
24
15
22

(63)
(959)
(299)
(1)
(37)
(1,359)

(77)
(902)
(298)
(1)
(40)
(1,318)

20
23
21
18

(439)
(79)
(229)
(4)
(86)
(20)
(857)
(2,216)
1,154

(477)
(65)
(221)
(1)
(43)
(22)
(829)
(2,147)
1,539

–
231
41
2
198
675
1,147
7
1,154

–
230
41
4
232
1,026
1,533
6
1,539

Note

ASSETS
Non-current assets
Intangible assets
Property, plant and equipment
Right-of-use assets
Deferred tax assets
Trade and other receivables
Current assets
Inventories
Trade and other receivables
Derivative financial assets
Income tax receivables
Cash and cash equivalents
Assets held for sale19
13

Total assets
LIABILITIES
Non-current liabilities
Trade and other payables
Lease liabilities
Borrowings
Deferred tax liabilities
Provisions for other liabilities and charges
Current liabilities
Trade and other payables
Bank overdrafts
Lease liabilities
Derivative financial liabilities
Income tax liabilities
Provisions for other liabilities and charges

22

Total liabilities
Net assets
EQUITY
Capital and reserves attributable to owners of the Company
Ordinary share capital
Share premium account
Capital reserve
Hedging reserve
Foreign currency translation reserve
Retained earnings
Equity attributable to owners of the Company
Non-controlling interest in equity
Total equity

25
25
25
25

The consolidated financial statements of Burberry Group plc (registered number 03458224) on pages 148 to 208 were approved andauthorised for issue by the Board on 14 May 2024 and signed on its behalf by:

Jonathan Akeroyd
Chief Executive Officer

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Financial Statements | Group Statement of Changes in Equity

GROUP STATEMENT OF CHANGES IN EQUITY
Attributable to ownersof the Company

Note

Balance as at 2 April 2022
Profit for the year
Other comprehensive income:Cash flow hedges
Foreign currency translation differences
Tax on other comprehensive income
Total comprehensive income for the year
Transactions with owners:
Employee share incentive schemes
Equity share awards
Tax on share awards
Exercise of share options
Purchase of own shares
Share buyback
Held by ESOP trusts
Dividends paid in the year
Balance as at 1 April 2023
Profit for the year
Other comprehensive income:Cash flow hedges
Foreign currency translation differences
Tax on other comprehensive income
Total comprehensive income for the year
Transactions with owners:
Employee share incentive schemes
Equity share awards
Tax on share awards
Exercise of share options
Purchase of own shares
Share buyback
Dividends paid in the year
Balance as at 30 March 2024

25
25

25
25

Ordinary
share
capital£mSharepremium
account£m

Otherreserves£m

Retainedearnings£m

Noncontrollinginterest Total equity
£m
£m

Total
£m

–
–

227
–

263
–

1,123
490

1,613
490

4
2

1,617
492

–
–
–
–

–
–
–
–

1
14
(1)
14

–
–
–
490

1
14
(1)
504

–
–
–
2

1
14
(1)
506

–
–
–

–
–
3

–
–
–

19
2
–

19
2
3

–
–
–

19
2
3

–
–
–
–
–

–
–
–
230
–

–
–
–
277
–

(404)
(1)
(203)
1,026
270

(404)
(1)
(203)
1,533
270

–
–
–
6
1

(404)
(1)
(203)
1,539
271

–
–
–
–

–
–
–
–

(3)
(34)
1
(36)

–
–
–
270

(3)
(34)
1
234

–
–
–
1

(3)
(34)
1
235

–
–
–

–
–
1

–
–
–

16
(2)
–

16
(2)
1

–
–
–

16
(2)
1

–
–
–

–
–
231

–
–
241

(402)
(233)
675

(402)
(233)
1,147

–
–
7

(402)
(233)
1,154

163

Burberry Annual Report 2023/24

Financial Statements | Group Statement of Cash FlowsGROUP STATEMENT OF CASH FLOWSNoteCash flows from operating activities
Profit before taxation
Adjustments to reconcile profit before taxation to net cash flows:
Amortisation of intangible assets
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
COVID-19-related rent concessions
Net impairment charge of property, plant and equipment
Net impairment charge of right-of-use assets
Loss/(gain) on disposal of intangible assets and property, plant and equipment
Gain on modification of right-of-use assets
Loss/(gain) on derivative instruments
Charge in respect of employee share incentive schemes
Net finance expense
Working capital changes:
Increase in inventories
Increase in receivables
Decrease in payables and provisions
Cash generated from operating activities
Interest received
Interest paid
Taxation paid
Net cash generated from operating activities

12
13
14
13
14

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of property, plant and equipment
Initial direct costs of right-of-use assets
Payment in respect of acquisition of subsidiary
Net cash outflow from investing activities
Cash flows from financing activities
Dividends paid in the year
Payment of deferred consideration for acquisition of non-controlling interest
Payment of lease principal
Issue of ordinary share capital
Purchase of own shares through share buyback
Purchase of own shares through share buyback – stamp duty and fees
Purchase of own shares by ESOP trusts
Net cash outflow from financing activities

11
20
21
25
25

Net decrease in cash net of overdrafts
Effect of exchange rate changes
Cash net of overdrafts at beginning of year
Cash net of overdrafts

Note

Cash and cash equivalents
Bank overdrafts
Cash net of overdrafts

164

19
23

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

383

634

42
103
234
–
5
9
3
(4)
5
16
35

37
95
212
(13)
2
2
(19)
(2)
(2)
19
23

(57)
(32)
(77)
665
32
(52)
(139)
506

(10)
(17)
(49)
912
18
(40)
(140)
750

(158)
(50)
–
(4)
(19)
(231)

(136)
(43)
32
–
–
(147)

(233)
–
(231)
1
(400)
(2)
–
(865)

(203)
(6)
(210)
3
(400)
(4)
(1)
(821)

(590)
(9)
961
362

(218)
2
1,177
961

As at
30 March
2024
£m

As at
1 April
2023
£m

441
(79)
362

1,026
(65)
961

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

1. Basis of preparation
Burberry Group plc and its subsidiaries (the Group) is a global luxury goods manufacturer, retailer and wholesaler. The Group also
licenses third parties to manufacture and distribute products using the ‘Burberry’ trademarks. All of the companies which comprise
the Group are controlled by Burberry Group plc (the Company) directly or indirectly.
The consolidated financial statements of the Group have been prepared in accordance with the requirements of the Companies Act
2006 and UK-adopted International Accounting Standards (IFRS). These consolidated financial statements have been prepared
under the historical cost convention, except as modified by the revaluation of certain financial assets and financial liabilities at fairvalue through profit or loss.
The consolidated financial statements are presented in £m. Financial ratios are calculated using unrounded numbers.

Consideration of climate-related matters
The Group has performed a climate-related scenario analysis as required by the Task Force on Climate-Related Financial
Disclosures. This scenario analysis takes into consideration different climate-related scenarios, including a 2°C or lower scenario.
Based on this scenario analysis, consideration has been given to the impact of climate-related risks on management’s judgements
and estimates, including inventory provisions and the impairment of property, plant and equipment and right-of-use assets.
The incurred costs and investments associated with our sustainability strategy are reflected in the Group’s financial statements,
including within inventories, property, plant and equipment, and operating profit.
The impact of climate-related risks on the consolidated financial statements for the 52 weeks to 30 March 2024 is not material.
This is due to the time horizons in which physical risks are expected to be most significant not aligning to the useful lives of ourassets and the investments we continue to make to mitigate market and policy risks.
The committed future financial investments associated with our sustainability strategy are included within our budget andthree-year forward-looking financial plans. These financial plans have been used to support our impairment reviews and going
concern and viability assessment. Future plans may incur additional investment on research and development, higher expenditure on
raw materials and other as yet unidentified costs.

Going concern
In considering the appropriateness of adopting the going concern basis in preparing the financial statements, the Directors haveassessed the potential cash generation of the Group. This assessment for any indicators that the going concern basis of preparation
is not appropriate covers the period from the date of signing the financial statements up to 27 September 2025.
The scenarios considered by the Directors include a severe but plausible downside scenario reflecting the Group’s base planadjusted for severe but plausible impacts from the Group’s principal risks. This central planning scenario is informed by acomprehensive review of the macroeconomic scenarios using third-party projections of macroeconomic data for the luxury fashionindustry. The Group’s central planning scenario reflects a balanced projection aligned to the Group’s strategy, a balanced
assumption for economic uncertainty and capital expenditure and dividends in line with the Group’s capital allocation framework.
As a sensitivity, this central planning scenario has been flexed to reflect the aggregation of severe impacts arising linked to ourprincipal risks which in total represents a 13% downgrade to revenues in the 18 month period to September 2025, in comparison to
the base case, as well as the associated consequences for EBITDA and cash. Management consider this represents a severe but
plausible downside scenario appropriate for assessing going concern.
The severe but plausible downside modelled the following risks occurring simultaneously:• A severe impact arising from a more severe and prolonged reduction in the GDP growth assumptions across the markets in which
we operate, combined with a reduction to our global consumer demand arising from a change in consumer preference comparedto our central planning scenario• An increase in geopolitical tension which reduces GDP growth assumptions compared to the central planning model• A significant reputational incident such as negative sentiment propagated through social media• The impact of a business interruption event, resulting in a two week interruption arising from the supply chain impact,
and interruption to one of our channels• The occurrence of a one-time physical risk relating to climate change in FY 2024/25 and the materialisation of a severe but
plausible ongoing market risk relating to climate change in line with a scenario reflecting a 2°C global temperature increase
compared to pre-industrial levels• The payment of a settlement arising from a regulatory or compliance-related matter• A short-term impact of a 10% weakening in a key non-sterling currency for the Group before it is recovered throughprice adjustment• Repayment of Sustainability Bond without raising new finance

165

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

1. Basis of preparation continued
Going concern continued
Further mitigating actions within management control would be available under this scenario, including working capital reduction
measures and limiting capital expenditure, but these were not incorporated into the downside modelling.
The Directors have also considered the Group’s current liquidity and available facilities. As at 30 March 2024, the Group Balance
Sheet reflects cash net of overdrafts of £362 million. In addition, the Group has access to a £300 million revolving credit facility
which matures in July 2026, which is currently undrawn. The £300 million sustainability bond matures within the going concern
period on 21 September 2025 and the revolving credit facility is considered to be available to be drawn within the severe but
plausible scenario in order to settle this repayment.
The Group is in compliance with the covenants for the revolving credit facility, and the borrowings raised via the sustainability bondare not subject to covenants. Details of cash, overdrafts, borrowings and facilities are set out in notes 19, 23 and 24 respectively ofthese financial statements. Whilst outside of the going concern assessment period, the Group have considered renewal of therevolving credit facility ahead of maturity in July 2026 and are confident that this will be available.
In all the scenarios assessed, taking into account current liquidity and available resources and before the inclusion of any mitigating
actions within management control, the Group was able to maintain sufficient liquidity to continue trading through the going concern
period up to 27 September 2025. On the basis of the assessment performed, the Directors consider it is appropriate to continue toadopt the going concern basis in preparing the consolidated financial statements for the 52 weeks ended 30 March 2024.

New standards, amendments and interpretations adopted in the period
A number of new amendments to standards are effective for the financial period commencing 2 April 2023 but they do not have amaterial impact on the financial statements of the Group. Refer to note 9 and note 15 for further details on the impact of adoption ofamendments to IAS 12 Income taxes.

Standards not yet adopted
Certain new accounting standards and amendments to standards have been published that are not mandatory for the 52 weeks to
30 March 2024 and have not been early adopted by the Group. These standards are not expected to have a material impact on theentity in the current or future reporting periods and on foreseeable future transactions, apart from IFRS 18 Presentation andDisclosure in Financial Statements. IFRS 18, which is effective for reporting periods beginning on or after 1 January 2027, replaces
IAS 1 Presentation of Financial Statements and is expected to impact the presentation of the Group’s primary financial statements.
The amendment was issued on 9 April 2024 and the impact will be communicated in future periods following an assessment by
the Group.

Basis of consolidation
The Group’s annual financial statements comprise those of Burberry Group plc (the Company) and its subsidiaries, presented as asingle economic entity. The results of the subsidiaries are prepared for the same reporting year as the Company, using consistentaccounting policies across the Group.
The financial year is the 52 weeks ended 30 March 2024 (last year: 52 weeks ended 1 April 2023).
Subsidiaries are all entities (including special purpose entities) over which the Group has control. The Group controls an entity
when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to theGroup and cease to be consolidated from the date on which control is transferred out of the Group. Where there is a loss of control
of a subsidiary, the consolidated financial statements include the results for the portion of the reporting period during which theGroup had control. Intra-group transactions, balances and unrealised profits on transactions between Group companies are
eliminated in preparing the Group financial statements. The Group treats transactions with non-controlling interests as transactions
with equity owners of the Group. For acquisitions of additional interests in subsidiaries from non-controlling interests, the difference
between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded inequity. Gains or losses on disposals of interests in subsidiaries to non-controlling interests are also recorded in equity.

Key sources of estimation uncertainty
Preparation of the consolidated financial statements in conformity with IFRS requires that management make certain estimates andassumptions that affect the measurement of reported revenues, expenses, assets and liabilities and the disclosure ofcontingent liabilities.
If in the future such estimates and assumptions, which are based on management’s best estimates at the date of the financial
statements, deviate from actual circumstances, the original estimates and assumptions will be updated as appropriate in the period
in which the circumstances change.
Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. The key areas where the estimates and assumptions applied have asignificant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year are
discussed below. Further details of the Group’s accounting policies in relation to these areas are provided in note 2.

166

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

1. Basis of preparation continued
Key sources of estimation uncertainty continued
Impairment, or reversals of impairment, of property, plant and equipment and right-of-use assets
Property, plant and equipment and right-of-use assets are reviewed for impairment if events or changes in circumstances indicatethat the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount of an asset
or a cash generating unit is determined based on value-in-use calculations prepared using management’s best estimates andassumptions at the time. Refer to notes 13 and 14 for further details of retail property, plant and equipment, right-of-use assets
and impairment reviews carried out in the period and for sensitivities relating to this key source of estimation uncertainty.

Inventory provisioning
The Group purchases, manufactures and sells luxury goods and is subject to changing consumer demands and fashion trends.
The recoverability of the cost of inventories is assessed every reporting period, by considering the expected net realisablevalue of inventory compared to its carrying value. Where the net realisable value is lower than the carrying value, a provision isrecorded. When calculating inventory provisions, management considers the nature and condition of the inventory, as well as
applying assumptions in respect of anticipated saleability of finished goods and future usage of raw materials. Refer to note 17
for further details of the carrying value of inventory and inventory provisions and for sensitivities relating to this key source of
estimation uncertainty.

Uncertain tax positions
In common with many multinational companies, the Group faces tax audits in jurisdictions around the world in relation to intragrouptransactions between associated entities within the Group. These tax audits are often subject to inter-government negotiations.
The matters under discussion are often complex and can take many years to resolve.
Tax liabilities are recorded based on management’s estimate of either the most likely amount or the expected value amount
depending on which method is expected to better reflect the resolution of the uncertainty. Given the inherent uncertainty inassessing tax outcomes, the Group could, in future periods, experience adjustments to these tax liabilities that have a material
positive or negative effect on the Group’s results for a particular period.
Refer to note 9 for further details of management estimates surrounding the outcome of all matters under dispute or negotiation
between governments in relation to current tax liabilities recognised at 30 March 2024, and for sensitivities relating to this key
source of estimation uncertainty.

Key judgements in applying the Group’s accounting policies
Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts
recognised in the Group financial statements. Further details of the Group’s accounting policies are provided in note 2.
Key judgements that have a significant impact on the amounts recognised in the Group financial statements for the 52 weeks
to 30 March 2024 and the 52 weeks to 1 April 2023 are as follows:
Where the Group is a lessee, judgement is required in determining the lease term at initial recognition, and throughout the leaseterm, where extension or termination options exist. In such instances, all facts and circumstances that may create an economic
incentive to exercise an extension option, or not exercise a termination option, have been considered to determine the lease term.
Considerations include, but are not limited to, the period assessed by management when approving initial investment, together withcosts associated with any termination options or extension options. Extension periods (or periods after termination options) are only
included in the lease term if the lease is reasonably certain to be extended (or not terminated). Where the lease term has been
extended by assuming an extension option will be recognised, this will result in the initial right-of-use assets and lease liabilities at
inception of the lease being greater than if the option was not assumed to be exercised. Likewise, assuming a break option will be
exercised will reduce the initial right-of-use assets and lease liabilities.
Refer to note 21 for further details surrounding the judgements regarding the impact of breaks and options on lease liabilities.

167

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

2. Accounting policies
The material accounting policies of the Group are:a) Revenue
The Group obtains revenue from contracts relating to sales of luxury goods to retail and wholesale customers. The Group also
obtains revenue through licences issued to third parties to produce and sell goods carrying ‘Burberry’ trademarks. Retail purchases
are paid at time of purchase while wholesale and licensing purchases are paid on short-term credit terms. Revenue is statedexcluding Value Added Tax and other sales-related taxes.

Retail and wholesale revenue
For retail and wholesale revenue, the primary performance obligation is the transfer of luxury goods to the customer. For retailrevenue this is considered to occur when control of the goods passes to the customer. For in-store retail revenue, control transfers
when the customer takes possession of the goods in store and pays for the goods. For digital retail revenue, control is considered totransfer when the goods are delivered to the customer. The timing of transfer of control of the goods in wholesale transactions
depends upon the terms of trade in the contract. Principally for wholesale revenue, revenue is recognised either when goods arecollected by the customer from the Group’s premises, or when the Group has delivered the goods to the location specified in thecontract. Provision for returns and other allowances are reflected in revenue when revenue from the customer is first recognised.
A sales return liability and a corresponding return asset within gross inventory are recognised. Retail customers typically have theright to return product within a limited time frame while wholesale customers typically have the right to return damaged and, underagreement, certain current season products. Returns are initially estimated based on historical levels and adjusted subsequently as
returns are incurred.
Some wholesale contracts may require the Group to make payments to the wholesale customer for services directly relating to thesale of the Group’s goods, such as the cost of staff handling the Group’s goods at the wholesaler. Payments to the customer directly
relating to the sale of goods to the customer are recognised as a reduction in revenue, unless in exchange for a distinct good orservice. These charges are recognised in revenue at the later of when the sale of the related goods to the customer is recognised orwhen the customer is paid, or promised to be paid, for the service. Payments to the customer relating to a service which is distinct
from the sale of goods to the customer are recognised in operating costs.
The Group sells gift cards and similar products to customers, which can be redeemed for goods, up to the value of the card,
at a future date. Revenue relating to gift cards is recognised when the card is redeemed, up to the value of the redemption.
Unredeemed amounts on gift cards are classified as contract liabilities. Typically, the Group does not expect to have significant
unredeemed amounts arising on its gift cards.

Licensing revenue
The Group’s licences entitle the licensee to access the Group’s trademarks over the term of the licence. Hence revenue fromlicensing is recognised over the term of access to the licence. Royalties receivable under licence agreements are usually based on
production or sales volumes and are accrued in revenue as the subsequent production or sale occurs. Any amounts received whichhave not been recognised in revenue are classified as contract liabilities.

b) Segment reportingAs required by IFRS 8 Operating Segments, the segmental information presented in the financial statements is reported in a mannerconsistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker, who is
responsible for allocating resources and assessing performance, has been identified as the Board of Directors.
The Group has centralised activities for designing, making and sourcing, which ensure a global product offering is sold through retail
and wholesale channels worldwide. Resource allocation and performance is assessed across the whole of the retail/wholesalechannel globally. Hence the retail/wholesale channel has been determined to be an operating segment.
Licensed products are manufactured and sold by third-party licensees. As a result, this channel is assessed discretely by the
Chief Operating Decision Maker and has been determined to be an operating segment.
The Group presents an analysis of its revenue by channel, by product division and by geographical destination.

c) Business combinations
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition
is measured as the fair value of the assets given, equity instruments issued and liabilities assumed at the date of exchange.
Contingent payments are subsequently remeasured at fair value through the Income Statement. All transaction costs are expensed
to the Income Statement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest.
Non-controlling interests in subsidiaries are identified separately from the Group’s equity, and are initially measured either atfair value or at a value equal to the non-controlling interests’ share of the identifiable net assets acquired. The choice of the basis ofmeasurement is an accounting policy choice for each individual business combination. The excess of the cost of acquisition together
with the value of any non-controlling interest over the fair value of the identifiable net assets acquired is recorded as goodwill. If thecost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the
Income Statement.

168

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

2. Accounting policies continuedd) Share schemes
The Group operates a number of equity-settled share-based compensation schemes under which services are received from
employees (including Executive Directors) as consideration for equity instruments of the Company. The cost of the share-based
incentives is measured with reference to the fair value of the equity instruments awarded at the date of grant, including share awards
and options. Appropriate option pricing models, including Black-Scholes, are used to determine the fair value of the option awards
made. The fair value takes into account the impact of any market performance conditions, but the impact of non-market performance
conditions is not considered in determining the fair value on the date of grant. Vesting conditions which relate to non-market
conditions are allowed for in the assumptions used for the number of share awards or options expected to vest. The estimate of thenumber of share awards or options expected to vest is revised at each balance sheet date.
In some circumstances, employees may provide services in advance of the grant date. The grant date fair value is estimated for the
purposes of recognising the expense during the period between the service commencement period and the grant date.
The cost of the share-based incentives is recognised as an expense over the vesting period of the share awards, or options,with a corresponding increase in equity.
When share awards or options are exercised, they are settled either via issue of new shares in the Company, or through shares held
in an Employee Share Option Plan trust or The Burberry Group plc SIP Trust (collectively known as the ESOP trusts), depending on
the terms and conditions of the relevant scheme. For new shares issued, the proceeds received from the exercise of share options,net of any directly attributable transaction costs, are credited to share capital and share premium accounts. When ESOP shares areused, any difference between the exercise price and their cost is recognised in retained earnings.

e) Leases
The Group is both a lessee and lessor of property, plant and equipment. A contract is, or contains, a lease if the contract conveys theright to control the use of an identified asset for a period of time in exchange for consideration. An identified asset may be
specifically or implicitly specified. Control exists when the lessee has both the right to direct the use of the identified asset and theright to obtain substantially all of the economic benefits from that use.

Lessee accounting
The Group’s principal lease arrangements where the Group acts as the lessee are for property, most notably the lease ofretail stores, corporate offices and warehouses. Other leases are for office equipment, vehicles, and supply chain equipment.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The Group recognises all lease liabilities and the corresponding right-of-use assets on the Balance Sheet, with the exception ofcertain short-term leases (12 months or less) and leases of low value assets, which are expensed as incurred. Leases and thecorresponding right-of-use assets are initially recognised when the Group obtains control of the underlying asset. Leases for new
assets are presented as additions to lease liabilities and right-of-use assets.
Lease liabilities are initially measured on a present value basis. Lease liabilities include the net present value of the following
lease payments:• Fixed payments, less any incentives• Variable lease payments that are based on a future index or rate
• Amounts expected to be payable by the lessee under residual value guarantees and• The cost of exercising a purchase option if the lessee is reasonably certain to exercise that option
Where the lease contains an extension option or a termination option which is exercisable by the Group, as lessee, an assessment
is made as to whether the Group is reasonably certain to exercise the extension option, or not exercise the termination option,
considering all relevant facts and circumstances that create an economic incentive. Considerations may include the contractual
terms and conditions for the optional periods compared to market rates, costs associated with the termination of the lease and theimportance of the underlying asset to the Group’s operations.
Variable lease payments dependent upon a future index or rate are measured using the amounts payable at the commencement dateuntil the index or rate is known. Variable lease payments not dependent on an index or rate, including lease payments based on apercentage of turnover, are excluded from the calculation of lease liabilities.
Payments are discounted at the incremental borrowing rate of the lessee, unless the interest rate implicit in the lease can bereadily determined.
Right-of-use assets are classified as property or non-property. The Group has elected not to apply the short-term exemption
to the property class of right-of-use assets. Where the exemption is applied to the non-property class of right-of-use assets,lease payments are expensed as incurred. The low value asset exemption has been applied to the non-property class of assets
where applicable.

169

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

2. Accounting policies continuede) Leases continued
Lessee accounting continued
In circumstances where the Group is in possession of a property but there is no executed agreement or other binding obligationin relation to the property, rent is expensed until such time the obligation becomes binding, at which point, a right-of-use asset
and lease liability will be recognised prospectively. These lease costs are disclosed as lease in holdover expenses. Refer tonotes 5 and 21.
Right-of-use assets are measured at cost comprising the following:• The amount of the initial measurement of the lease liability• Any lease payments made at or before the commencement date less any lease incentives received and• Any initial direct costs incurred in entering into the lease
The Group recognises depreciation of right-of-use assets and interest on lease liabilities in the Income Statement over the lease
term. Repayments of lease liabilities are classified separately in the Statement of Cash Flows where the cash payments for the
principal portion of the lease liability are presented within financing activities, and cash payments for the interest portion arepresented within operating activities. Payments in relation to variable lease payments based on turnover, short-term leases andleases of low value assets which are not included on the Balance Sheet are included within operating expenses.
Modifications to lease agreements, extensions to existing lease agreements and changes to future lease payments relating toexisting terms in the contract, including market rent reassessments and index-based changes, are presented as remeasurements of
the lease liabilities. The related right-of-use asset is also remeasured. If the modification results in a reduction in scope of the lease,either through shortening the lease term or through disposing of part of the underlying asset, a gain or loss on disposal may arise
relating to the difference between the lease liabilities and the right-of-use asset applicable to the reduction in scope.
Right-of-use assets are included in the review for impairment of property, plant and equipment and intangible assets with finite
economic lives, if there is an indication that the carrying amount of the cash generating unit may not be recoverable.

COVID-19-Related Rent Concessions
The Group accounts for eligible COVID-19 related rent forgiveness as negative variable lease payments. Rent concessions arerecognised once a legally binding agreement is made between both parties, by derecognising the portion of the lease liability
that has been forgiven and recognising the benefit in the Income Statement. In the prior year, the Group recognised £13 million in
COVID-19-related rent concessions in the Income Statement within other operating income. This was presented as an adjusting item
(refer to note 6). In the Statement of Cash Flows, the forgiveness results in lower payments of lease principal. The negative variable
lease payments in the Income Statement comprise a non-cash item which is adjusted for to calculate cash generated fromoperating activities. No COVID-19 related rent concessions were recognised in the 52 weeks to 30 March 2024.

f) Dividend distributions
Dividend distributions to Burberry Group plc’s shareholders are recognised as a liability in the period in which the dividend becomes
a committed obligation. Final dividends are recognised when they are approved by the shareholders. Interim dividends arerecognised when paid.

g) Pension costs
Eligible employees participate in defined contribution pension schemes, the principal one being in the UK with its assets held in an
independently administered fund. The cost of providing these benefits to participating employees is recognised in the Income
Statement as they fall due and comprises the amount of contributions from the Group to the schemes.

h) Intangible assets
Goodwill
Goodwill is the excess of the cost of acquisition together with the value of any non-controlling interest, over the fair value ofidentifiable net assets acquired. Goodwill on acquisition is recorded as an intangible asset. Fair values are attributed to theidentifiable assets, liabilities and contingent liabilities that existed at the date of acquisition, reflecting their condition at that
date. Adjustments are also made to align the accounting policies of acquired businesses with those of the Group.
Goodwill is assigned an indefinite useful life. Impairment reviews are performed annually, or more frequently if events or changes incircumstances indicate that the carrying value may not be recoverable. Impairment losses recognised on goodwill are not reversed infuture periods.

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Financial Statements | Notes to the Financial Statements

2. Accounting policies continuedh) Intangible assets continued
Trademarks, licences and other intangible assets
The cost of securing and renewing trademarks and licences, and the cost of acquiring other intangible assets, is capitalised atpurchase price, or fair value if acquired through a business combination, and amortised by equal annual instalments over the period
in which benefits are expected to accrue, typically ten years for trademarks, or the term of the licence. The useful life of trademarks
and other intangible assets is determined on a case-by-case basis, in accordance with the terms of the underlying agreement andthe nature of the asset.

Computer software
Computer software costs are capitalised during the development phase at the point at which there is sufficient certainty that thesoftware will deliver future economic benefits to the Group. The cost of acquiring computer software (including licences andseparately identifiable development costs) is capitalised as an intangible asset at purchase price, plus any directly attributable costof preparing that asset for its intended use. Software costs are amortised on a straight-line basis over their estimated useful lives,
which may be up to seven years.

i) Property, plant and equipment
Property, plant and equipment, with the exception of assets in the course of construction, is stated at cost or deemed cost based on
historical revalued amounts prior to the adoption of IFRS, less accumulated depreciation and provision to reflect any impairment invalue. Assets in the course of construction are stated at cost less any provision for impairment and transferred to completed assets
when substantially all of the activities necessary for the asset to be ready for use have occurred. Cost includes the original purchaseprice of the asset and costs attributable to bringing the asset to its working condition for its intended use.

Depreciation
Depreciation of property, plant and equipment is calculated to write off the cost or deemed cost, less residual value, of the assets inequal annual instalments over their estimated useful lives at the following rates:
Type of asset

Category of property, plant and equipment

Useful life

Land
Freehold buildings
Leasehold improvements
Plant and machinery
Retail fixtures and fittings
Office fixtures and fittings
Computer equipment
Assets in the course of construction

Freehold land and buildings
Freehold land and buildings
Leasehold improvements
Fixtures, fittings and equipment
Fixtures, fittings and equipment
Fixtures, fittings and equipment
Fixtures, fittings and equipment
Assets in the course of construction

Not depreciatedUp to 50 years
Over the unexpired term of the lease
Up to 15 years
Up to 5 years
Up to 5 years
Up to 7 years
Not depreciatedProfit/loss on disposal of property, plant and equipment and intangible assets
Profits and losses on the disposal of property, plant and equipment and intangible assets represent the difference between the net
proceeds and net book value at the date of sale. Disposals are accounted for when the relevant transaction becomes unconditional.

j) Assets held for saleNon-current assets are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction
rather than through continued use, and a sale within the next 12 months is considered to be highly probable. Assets classified as held
for sale cease to be depreciated and they are stated at the lower of carrying amount and fair value less cost to sell.

k) Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets underconstruction are also tested annually. Assets that are subject to amortisation or depreciation are reviewed for impairment whenever
events or changes in circumstance indicate that the carrying value may not be recoverable. An impairment loss is recognised for theamount by which the carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair valueless costs to sell and value-in-use. For the purposes of assessing impairment, retail assets are grouped at the lowest levels for which
there are separately identifiable cash flows, being individual stores (cash generating units), and goodwill assets are considered at
the lowest level being monitored by management. Non-financial assets, other than goodwill, for which an impairment has beenpreviously recognised are reviewed for possible reversal of impairment at each reporting date.

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2. Accounting policies continuedl) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost consists of all costs of purchase, costs of conversion,
design costs and other costs incurred in bringing the inventories to their first point of sale location and condition. The cost of
inventories is determined using a weighted average cost method, taking account of the fashion seasons for which the inventory wasoffered. Where necessary, provision is made to reduce cost to no more than net realisable value having regard to the nature andcondition of inventory, as well as its anticipated utilisation and saleability.

m) Taxation
Tax expense represents the sum of the current tax expense and the deferred tax charge.
Current tax is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because
it excludes items of income or expense which are taxable or deductible in other years and it further excludes items which are nevertaxable or deductible. The Group’s liability for current tax is calculated using tax rates which have been enacted or substantively
enacted at the balance sheet date.
Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets andliabilities and their carrying amounts in the consolidated financial statements. However, if the temporary difference arises from theinitial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences, nodeferred tax will be recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively
enacted at the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred
tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which thetemporary differences can be utilised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversalof the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in theforeseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entities or different taxable entities where there is an intention to settle the balances on a net basis.

n) Provisions
Provisions are recognised when there is a present legal or constructive obligation as a result of past events, for which it is probablethat an outflow of economic benefits will be required to settle the obligation, and where the amount of the obligation can be reliably
estimated. When the effect of the time value of money is material, provision amounts are calculated based on the present value ofthe expenditures expected to be required to settle the obligation. The present value is calculated using forward market interest rates
as measured at the balance sheet reporting date, which have been adjusted for risks specific to the future obligation.

Property obligations
A provision for the present value of future property reinstatement costs is recognised where there is an obligation to return theleased property to its original condition at the end of a lease term. The reinstatement cost at the end of a lease usually arises due toleasehold improvements and modifications carried out by the Group in order to customise the property during tenure of the lease.
As a result, the cost of the reinstatement provision is recognised as a component of the cost of the leasehold improvements inproperty, plant and equipment when these are installed and amortised to the income statement over the expected life of the lease.

o) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown inequity as a deduction, net of tax, from the proceeds.
Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including
any directly attributable incremental costs, is deducted from retained earnings. Where such shares are subsequently cancelled,
a transfer is made from retained earnings to the capital reserve, equivalent to the nominal value of the shares purchased andsubsequently cancelled. Where such shares are subsequently sold or reissued, any consideration received, net of any directly
attributable incremental transaction costs and the related income tax effects, is credited to retained earnings up to the value of theconsideration originally paid. Any additional consideration received is credited to the share premium account included in equity
attributable to owners of the Company.

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Financial Statements | Notes to the Financial Statements

2. Accounting policies continuedp) Financial instruments
Financial instruments are initially recognised at fair value plus directly attributable transaction costs on the Balance Sheet when theentity becomes a party to the contractual provisions of the instrument. A financial asset is derecognised when the contractual rights
to the cash flow expire or substantially all risks and rewards of the asset are transferred. A financial liability is derecognised when
the obligation specified in the contract is discharged, cancelled or expired.
At initial recognition, all financial liabilities are stated at fair value. Subsequent to initial recognition, all financial liabilities are stated
at amortised cost using the effective interest rate method except for derivatives which are held at fair value and which are classified
as fair value through profit and loss, except where they qualify for hedge accounting. Financial assets are classified as either
amortised cost or fair value through profit and loss depending on their cash flow characteristics. Assets with cash flows that
represent solely payments of principal and interest are measured at amortised cost. The fair value of the Group’s financial assets andliabilities held at amortised cost mostly approximate their carrying amount due to the short maturity of these instruments. Where thefair value of any financial asset or liability held at amortised cost is materially different to the book value, the fair value is disclosed.
The Group classifies its instruments in the following categories:
Financial instrument category

NoteClassification

Measurement

Fair value
measurement
hierarchy2

Cash and cash equivalents
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Borrowings
LeasesDeferred consideration
Forward foreign exchange contracts
Forward foreign exchange contracts
used for hedging1
Equity swap contracts

19
19
16
20
24
21
20
18

Amortised cost
Fair value through profit and loss
Amortised cost
Other financial liabilities
Other financial liabilities
Lease liabilities
Fair value through profit and loss
Fair value through profit and loss

Amortised cost
Fair value through profit and loss
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Fair value through profit and loss
Fair value through profit and loss

N/A
2
N/A
N/A
N/A
N/A
3
2

18
18

Fair value – hedging instrument
Fair value through profit and loss

Fair value – hedging instrument3
Fair value through profit and loss

2
2

1. Cash flow hedge and net investment hedge accounting is applied to the extent it is achievable.
2. The fair value measurement hierarchy is only applicable for financial instruments measured at fair value.
3. Forward foreign exchange contracts used for hedging are classified as Fair value – hedging instruments under IFRS 9, however IAS 39 hedge accounting has been applied.

The measurements for financial instruments carried at fair value are categorised into different levels in the fair value hierarchy basedon the inputs to the valuation technique used. The different levels are defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at themeasurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly.
Level 3: includes unobservable inputs for the asset or liability.
Observable inputs are those which are developed using market data, such as publicly available information about actual events ortransactions. The Group has an established framework with respect to measurement of fair values, including Level 3 fair values. The
Group regularly reviews any significant inputs which are not derived from observable market data and considers, where available,
relevant third-party information, to support the conclusion that such valuations meet the requirements of IFRS. The classificationlevel in the fair value hierarchy is also considered periodically.
The fair value of those cash and cash equivalents measured at fair value through profit and loss, principally money market funds,
is derived from their net asset value which is based on the value of the portfolio investment holdings at the balance sheet date.
This is considered to be a Level 2 measurement.
The fair value of forward foreign exchange contracts, equity swap contracts and trade and other receivables, principally cash settled
equity swaps, is based on a comparison of the contractual and market rates and, in the case of forward foreign exchange contracts,
after discounting using the appropriate yield curve as at the balance sheet date. All Level 2 fair value measurements are calculatedusing inputs which are based on observable market data.
The fair value of the contingent payment component of deferred consideration is considered to be a Level 3 measurement and isderived using a present value calculation, incorporating observable and non-observable inputs. This valuation technique has been
adopted as it most closely mirrors the contractual arrangement.
The Group’s primary categories of financial instruments are listed below:

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Financial Statements | Notes to the Financial Statements

2. Accounting policies continuedp) Financial instruments continued
Cash and cash equivalents
Cash and short-term deposits on the Balance Sheet comprise cash at banks and on hand and short-term highly liquid deposits witha maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk ofchanges in value. In the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts, which are recorded undercurrent liabilities on the Balance Sheet.
While cash at bank and in hand is classified as amortised cost, some short-term deposits are classified as fair value through profit
and loss.
Cash and cash equivalents held at amortised cost are subject to impairment testing at each period end.

Trade and other receivables
Trade and other receivables are included in current assets, except for maturities greater than 12 months after the balance sheet date.
Most receivables are held with the objective to collect the contractual cash flows and are therefore recognised initially at fair value
and subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. A provision for
the expected credit losses on trade receivables is established at inception. Expected credit loss rates are calculated by reviewing
lifetime expected credit losses using historic and forward-looking data. The amount of the movement in the provision is recognisedin the Income Statement.

Trade and other payables
Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.
Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method.

Borrowings
Borrowings are recognised initially at fair value, inclusive of transaction costs incurred. Borrowings are subsequently stated atamortised cost and the difference between the proceeds (net of transaction costs) and the redemption value is recognised in the
Income Statement over the period of the borrowings using the effective interest rate method. Borrowings are classified as current
liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance
sheet date.

Deferred consideration
Deferred consideration is initially recognised at the present value of the expected future payments. It is subsequently remeasured
at fair value at each reporting period with the change in fair value relating to changes in expected future payments recorded in the
Income Statement as an operating expense or income. Changes in fair value relating to unwinding of discounting to present value arerecorded as a financing expense.

Derivative instruments
The Group uses derivative financial instruments to hedge its exposure to fluctuations in foreign exchange rates arising on certain
trading transactions. The principal derivative instruments used are forward foreign exchange contracts taken out to hedge highly
probable cash flows in relation to future sales, and product purchases. The Group also may designate forward foreign exchange
contracts or foreign currency borrowings as a net investment hedge of the assets of overseas subsidiaries.
When hedge accounting is applied, the Group documents at the inception of the transaction the relationship between the spot
element of the hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various
hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether thehedging instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows ofhedged items.
Derivatives are initially recognised at fair value at the trade date and are subsequently remeasured at their fair value. The methodof recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, thenature of the item being hedged. The Group designates certain derivatives as either: (1) hedges of the fair value of recognised assets
and liabilities or a firm commitment (fair value hedges); (2) hedges of highly probable forecast transactions (cash flow hedges);(3) hedges of net investment of the assets of overseas subsidiaries (net investment hedges); or (4) classified as fair value throughprofit and loss.
The forward elements of the hedging instrument are recognised in operating expenses.
Changes in the fair value relating to the spot element of derivatives that are designated and qualify as fair value hedges are recordedin the Income Statement immediately, together with any changes in the fair value of the hedged item that is attributable to thehedged risk.

174

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Financial Statements | Notes to the Financial Statements

2. Accounting policies continuedp) Financial instruments continued
Derivative instruments continued
The effective portion of changes in the fair value relating to the spot element of derivatives that are designated and qualify as cash
flow hedges is deferred in other comprehensive income. The gain or loss relating to the ineffective portion of the gain or loss isrecognised immediately in the Income Statement. Amounts deferred in other comprehensive income are recycled through theIncome Statement in the periods when the hedged item affects the Income Statement. When a hedging instrument expires or is sold,or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at the time remains
in equity and is recognised when the forecast transaction is ultimately recognised in the Income Statement. When a forecast
transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the
Income Statement within ‘net exchange gain/(loss) on derivatives – fair value through profit and loss’. If a derivative instrument is notdesignated as a hedge, the subsequent change to the fair value is recognised in the Income Statement within operating expenses orinterest depending upon the nature of the instrument.
Where the Group hedges net investments in foreign operations through derivative instruments or foreign currency borrowings, thegains or losses on the effective portion of the change in fair value of derivatives that are designated and qualify as a hedge of a net
investment, or the gains or losses on the retranslation of the borrowings are recognised in other comprehensive income and arereclassified to the Income Statement when the foreign operation that is hedged is disposed of.
Cash settled equity swaps are classified as fair value through profit and loss.

q) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in sterlingwhich is the Company’s functional and the Group’s presentation currency.

Transactions in foreign currencies
Transactions denominated in foreign currencies within each entity in the Group are translated into the functional currency at theexchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies, which areheld at the year end, are translated into the functional currency at the exchange rate ruling at the balance sheet date (closing rate).
Exchange differences on monetary items are recognised in the Income Statement in the period in which they arise, except wherethese exchange differences form part of a net investment in overseas subsidiaries of the Group, in which case such differences arerecognised in other comprehensive income.

Translation of the results of overseas businesses
The results of overseas subsidiaries are translated into the Group’s presentation currency of sterling each month at the averageexchange rate for the month, weighted according to the phasing of the Group’s trading results. The average exchange rate is used,
as it is considered to approximate the actual exchange rates on the date of the transactions. The assets and liabilities of such
undertakings are translated at the closing rates. Differences arising on the retranslation of the opening net investment in subsidiarycompanies, and on the translation of their results, are recognised in other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign
operation and translated at the closing rate.
The principal exchange rates used were as follows:
Average rateEuro
US Dollar
Chinese Yuan Renminbi
Hong Kong Dollar
South Korean Won
Japanese Yen

Closing rate

52 weeks to
30 March
2024

52 weeks to
1 April
2023

As at
30 March
2024

As at
1 April
2023

1.16
1.26
9.01
9.84
1,657
182

1.16
1.20
8.27
9.43
1,577
163

1.17
1.26
9.13
9.89
1,702
191

1.14
1.24
8.51
9.73
1,613
165

175

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Financial Statements | Notes to the Financial Statements

2. Accounting policies continuedr) Adjusted profit before taxation
In order to provide additional understanding of the underlying performance of the Group’s ongoing business, the Group’s results
include a presentation of Adjusted operating profit and Adjusted profit before taxation (adjusted PBT). Adjusted PBT is defined as
profit before taxation and before adjusting items. Adjusting items are those items which, in the opinion of the Directors, should be
excluded in order to provide a consistent and comparable view of the performance of the Group’s ongoing business. Generally,
this will include those items that are largely one-off and/or material in nature as well as income or expenses relating to acquisitions
or disposals of businesses or other transactions of a similar nature, including the impact of changes in fair value of expected future
payments or receipts relating to these transactions. Adjusting items are identified and presented on a consistent basis each year
and a reconciliation of adjusted PBT to profit before taxation is included in the financial statements. Adjusting items and their related
tax impacts, as well as adjusting taxation items, are added back to/deducted from profit attributable to owners of the Company toarrive at adjusted earnings per share. Refer to note 6 for further details on adjusting items and note 10 for details on adjusted
earnings per share.

3. Segmental analysis
The Chief Operating Decision Maker has been identified as the Board of Directors. The Board reviews the Group’s internalreporting in order to assess performance and allocate resources. Management has determined the operating segments based on
the reports used by the Board. The Board considers the Group’s business through its two channels to market, being retail/wholesale
and licensing.
Retail/wholesale revenues are generated by the sale of luxury goods through Burberry mainline stores, concessions, outlets anddigital commerce as well as Burberry franchisees, prestige department stores globally and multi-brand speciality accounts. The flowof global product between retail and wholesale channels and across our regions is monitored and optimised at a corporate level andimplemented via the Group’s inventory hubs and principal distribution centres situated in Europe, the USA, Mainland China andHong Kong S.A.R., China.
Licensing revenues are generated through the receipt of royalties from global licensees of beauty products, eyewear and fromlicences relating to the use of non-Burberry trademarks in Japan.
The Board assesses channel performance based on a measure of adjusted operating profit. This measurement basis excludes theeffects of adjusting items. The measure of earnings for each operating segment that is reviewed by the Board includes an allocationof corporate and central costs. Interest income and charges are not included in the result for each operating segment that isreviewed by the Board.
Retail/Wholesale

LicensingTotal

52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

52 weeks to
30 March2024£m

52 weeks to
1 April
2023£m

RetailWholesale
LicensingTotal segment revenue
Inter-segment revenue1
Revenue from external customers

2,400
506
–
2,906
–
2,906

2,501
543
–
3,044
–
3,044

–
–
63
63
(1)
62

–
–
51
51
(1)
50

2,400
506
63
2,969
(1)
2,968

2,501
543
51
3,095
(1)
3,094

Depreciation and amortisation2
Net impairment charge of property,
plant and equipment
Net impairment charge ofright-of-use assets3
Other non-cash items:
Share-based payments

(379)
(5)

(341)
(2)

–
–

–
–

(379)
(5)

(341)
(2)

(9)

(5)

–

–

(9)

(5)

(16)

(19)

–

–

(16)

(19)

Adjusted operating profit
Adjusting items4
Finance income
Finance expense
Profit before taxation

359

587

59

47

418
–
31
(66)
383

634
21
21
(42)
634

1. Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions that would be available to unrelated third parties.
2. Depreciation and amortisation for the 52 weeks to 1 April 2023 was presented excluding £3 million arising as a result of the Group’s restructuring programme, which waspresented as an adjusting item (refer to note 6).
3. Net impairment charge of right-of-use assets for the 52 weeks to 1 April 2023 was presented excluding a reversal of £6 million relating to charges as a result of the impact of
COVID-19 and a net charge of £3 million arising as a result of the Group’s restructuring programme, which were presented as adjusting items (refer to note 6).
4. Adjusting items relate to the Retail and Wholesale segment. Refer to note 6 for details of adjusting items.

176

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Financial Statements | Notes to the Financial Statements

3. Segmental analysis continued
Retail/Wholesale

LicensingTotal

52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

Additions to non-current assets

399

350

–

–

399

350

Total segment assets
Goodwill
Cash and cash equivalents
Taxation
Total assets per Balance Sheet

2,474

2,273

6

5

2,480
119
441
330
3,370

2,278
109
1,026
273
3,686

Additional revenue analysis
All revenue is derived from contracts with customers. The Group derives retail and wholesale revenue from contracts with customers
from the transfer of goods and related services at a point in time. Licensing revenue is derived over the period the licence agreement
gives the customer access to the Group’s trademarks.
52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

Accessories
Women’s
Men’s
Children’s/Other
Retail/Wholesale
Licensing
Total

1,055
860
842
149
2,906
62
2,968

1,125
867
868
184
3,044
50
3,094

Revenue by destination

52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

Asia Pacific
EMEIA1
Americas
Retail/Wholesale
Licensing
Total

1,286
1,017
603
2,906
62
2,968

1,297
1,004
743
3,044
50
3,094

Revenue by product division

1. EMEIA comprises Europe, Middle East, India and Africa.

Entity-wide disclosures
Revenue derived from external customers in the UK totalled £295 million for the 52 weeks to 30 March 2024 (last year: £257 million).
Revenue derived from external customers in foreign countries totalled £2,673 million for the 52 weeks to 30 March 2024 (last year:£2,837 million). This amount includes £531 million of external revenues derived from customers in the USA (last year: £661 million)and £648 million of external revenues derived from customers in Mainland China (last year: £683 million).
The total of non-current assets, other than financial instruments, and deferred tax assets located in the UK is £523 million(last year: £485 million). The remaining £1,168 million of non-current assets are located in other countries (last year: £1,094 million),with £352 million located in the USA (last year: £318 million) and £200 million located in Mainland China (last year: £235 million).

177

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Financial Statements | Notes to the Financial Statements

4. Net operating expenses
Note

Other operating income
Selling and distribution costs
Administrative expenses
Adjusting operating income
Adjusting operating expenses

6
6

Net operating expenses

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

(13)
1,248
356
1,591

(12)
1,207
353
1,548

–
–
–
1,591

(34)
12
(22)
1,526

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

2
84
17

2
76
17

1
214
19

–
191
18

1
41
3
(4)
5
9
572

1
36
–
(2)
2
5
565

111
18
12
20
(7)
4

125
20
11
10
(9)
2

5. Profit before taxation
Note

Adjusted profit before taxation is stated after charging/(crediting):
Depreciation of property, plant and equipment
Within cost of sales
Within selling and distribution costs
Within administrative expenses
Depreciation of right-of-use assets
Within cost of sales
Within selling and distribution costs
Within administrative expenses1
Amortisation of intangible assets
Within selling and distribution costs
Within administrative expenses
Loss on disposal of intangible assets
Gain on modification of right-of-use assets
Net impairment charge of property, plant and equipment
Net impairment charge of right-of-use assets2
Employee costs3
Other lease expense
Property lease variable lease expense
Property lease in holdover expense
Non-property short-term lease expense
Net exchange loss on revaluation of monetary assets and liabilities
Net gain on derivatives – fair value through profit and loss
Receivables net impairment charge

13
14
28
21
21
21

1. Depreciation of right-of-use assets within administrative expenses for the 52 weeks to 1 April 2023 was presented excluding £3 million arising as a result of the Group’s
restructuring programme, which was presented as an adjusting item (refer to note 6).
2. Net impairment charge of right-of-use assets for the 52 weeks to 1 April 2023 was presented excluding a reversal of £6 million relating to charges as a result of the impact of
COVID-19 and a net charge of £3 million arising as a result of the Group’s restructuring programme, which were presented as adjusting items (refer to note 6).
3. Employee costs for the 52 weeks to 1 April 2023 was presented excluding a charge of £10 million arising as a result of the Group’s restructuring programme, which waspresented as an adjusting item (refer to note 6).

178Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

6. Adjusting items

Adjusting items
Adjusting operating items
Impact of COVID-19:
Impairment reversal relating to retail cash generating units
Impairment reversal relating to inventory
COVID-19-related rent concessions
COVID-19-related government grant income
Other adjusting items:
Gain on disposal of property
Restructuring costs
Revaluation of deferred consideration liability
Total adjusting operating items
Adjusting financing items
Finance charge on adjusting items
Total adjusting financing items
Tax on adjusting items
Total adjusting items (post-tax)

NoteAnalysis of adjusting operating items:
Included in Cost of sales (Impairment reversal relating to inventory)
Included in Operating expenses
Included in Other operating income
Total

4
4

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

–
–
–
–

(6)
(1)
(13)
(2)

–
–
–
–

(19)
16
2
(23)

–
–
–
–

2
2
6
(15)

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

–
–
–
–

(1)
12
(34)
(23)

No adjusting items have been recorded for the 52 weeks to 30 March 2024. Adjusting items related to prior periods were as follows:

Impact of COVID-19
Impairment of retail cash generating units
During the 52 weeks to 1 April 2023, a net impairment reversal of £6 million, and an associated tax charge of £1 million, wererecorded following the reassessment of the COVID-19 related impairment provision. Any charges or reversals from the reassessmentof the original impairment adjusting item, had they arisen, would have been included in this adjusting item. Refer to notes 13 and 14
for details of impairment of retail cash generating units.

Impairment of inventory
During the 52 weeks to 1 April 2023, reversals of inventory provisions of £1 million were recorded and presented as adjusting items.
This was relating to inventory which had been provided for as an adjusting item at the previous year end and had either been sold, or
was expected to be sold, at a higher net realisable value than had been assumed when the provision had been initially estimated. Allother charges and reversals relating to inventory provisions have been recorded in adjusted operating profit. Refer to note 17 fordetails of inventory provisions.

COVID-19-related rent concessions
During the 52 weeks to 1 April 2023, eligible rent forgiveness amounts relating to COVID-19 were treated as negative variable
lease payments, which resulted in a credit of £13 million recorded within other operating income. This income was presented as
an adjusting item given that the amendment to IFRS 16 was only applicable for a limited period of time and it explicitly related to
COVID-19. The amendment expired on 30 June 2022 however the Group continued to apply the same accounting treatment applying
the principles of IFRS 9 for any ongoing COVID-19 related rent forgiveness. A related tax charge of £3 million was also recognised in
the prior year.

COVID-19-related grant income
During the 52 weeks to 1 April 2023, the Group recorded grant income of £2 million within other operating income relating to government
support to alleviate the impact of COVID-19. This income was presented as an adjusting item as it was explicitly related to COVID-19, and thearrangements were expected to last for a limited period of time. A related tax charge of £1 million was also recognised in the prior year.

179

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

6. Adjusting items continued
Other adjusting items
Gain on disposal of property
During the 52 weeks to 1 April 2023, the Group completed the sale of an owned property in the USA for cash proceeds of £22 million
resulting in a net gain on disposal of £19 million, recorded within other operating income. The net gain on disposal was recognised as
an adjusting item, in accordance with the Group’s accounting policy, as it was considered to be material and one-off in nature.
A related tax charge of £5 million was also recognised in the prior year.

Restructuring costs
During the 52 weeks to 1 April 2023, restructuring costs of £16 million were incurred primarily as a result of the organisational
efficiency programme announced in July 2020, which completed last year. The costs principally related to impairment charges
on non-retail assets and redundancies and were recorded in operating expenses. They were presented as an adjusting item,in accordance with the Group’s accounting policy, as the anticipated cost of the restructuring programme was considered material
and discrete in nature. A related tax credit of £4 million was also recognised in the prior year.

Items relating to the deferred consideration liability
On 22 April 2016, the Group entered into an agreement to transfer the economic right of the non-controlling interest in Burberry
Middle East LLC to the Group in exchange for consideration of contingent payments to be made to the minority shareholder over theperiod ending 30 March 2024. Contingent payments of £5 million remain outstanding at 30 March 2024, which will be paid once all
required documentation is complete.
During the 52 weeks to 1 April 2023, a charge of £2 million in relation to the revaluation of this balance was recognised in operating
expenses. No tax was recognised as the future payments were not considered to be deductible for tax purposes. This was presented
as an adjusting item in accordance with the Group’s accounting policy, as it arose from changes in the value of the liability for
expected future payments relating to the purchase of a non-controlling interest in the Group.

7. Auditor remuneration
Fees incurred during the year in relation to audit and non-audit services are analysed below:

Audit services in respect of the financial statements of the Company and consolidation
Audit services in respect of the financial statements of subsidiary companies
Audit-related assurance services
Other non-audit-related services
Total

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

0.5
2.9
0.1
0.2
3.7

0.5
2.7
0.2
0.1
3.5

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

9
22
31

3
18
21

(43)
(7)
(4)
(1)
(11)
(66)
–
(35)

(31)
(2)
(4)
(1)
(4)
(42)
(2)
(23)

8. Financing
Note

Finance income – amortised cost
Bank interest income – fair value through profit and loss
Finance income
Interest expense on lease liabilities1
Interest expense on overdrafts
Interest expense on borrowings
Bank charges
Other finance expense
Finance expense
Finance charge on adjusting items
Net finance expense

216

1. During the 52 weeks to 1 April 2023, interest expense on lease liabilities of £31 million excluded £2 million arising as a result of the Group’s restructuring programme, which
was presented as an adjusting item (refer to note 6).

180Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

9. Taxation
Analysis of charge for the year recognised in the Group Income Statement:

Current tax
UK corporation tax
Current tax on income for the 52 weeks to 30 March 2024 at 25% (last year: 19%)
Double taxation relief
Adjustments in respect of prior years1
Foreign tax
Current tax on income for the year
Adjustments in respect of prior years1
Total current tax
Deferred tax
UK deferred tax
Origination and reversal of temporary differences
Adjustments in respect of prior years1
Foreign deferred tax
Origination and reversal of temporary differences
Adjustments in respect of prior years1
Total deferred tax
Total tax charge on profit

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

104
(3)
44
145

116
(5)
12
123

26
(35)
(9)
136

34
3
37
160

5
(1)
4

4
–
4

(28)
–
(28)
(24)
112

(26)
4
(22)
(18)
142

1. Adjustments in respect of prior years relate mainly to adjustments to estimates of prior period tax liabilities and a net increase in provisions for uncertain tax positions (where
in some instances the provision also includes offsetting relief in a different jurisdiction) and tax accruals.

Analysis of charge for the year recognised in other comprehensive income and directly in equity:
52 weeks to
30 March2024£m

52 weeks to
1 April2023£m

Current tax
Recognised in other comprehensive income:Current tax (credit)/charge on exchange differences on loans (foreign currency translation reserve)
Total current tax recognised in other comprehensive income

(1)
(1)

1
1

Deferred tax
Recognised in equity:
Deferred tax charge/(credit) on share options (retained earnings)
Total deferred tax recognised directly in equity

2
2

(2)
(2)

181

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

9. Taxation continued
The tax rate applicable on profit varied from the standard rate of corporation tax in the UK due to the following factors:
52 weeks to
30 March2024£m

52 weeks to
1 April
2023£m

Profit before taxation

383

634

Tax at 25% (last year: 19%) on profit before taxation
Rate adjustments relating to overseas profits
Permanent differences
Current year tax losses not recognised
Prior year temporary differences and tax losses recognised
Adjustments in respect of prior years
Adjustments to deferred tax relating to changes in tax rates
Total taxation charge

97
–
3
3
1
8
–
112

120
1
4
–
(3)
19
1
142

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

112
–
112

136
6
142

Total taxation recognised in the Group Income Statement arises on the following items:

Tax on adjusted profit before taxation
Tax on adjusting items
Total taxation charge

Factors affecting future tax charges
Uncertain tax positions
The Group operates in numerous tax jurisdictions around the world and is subject to factors that may affect future tax charges
including transfer pricing, tax rate changes, tax legislation changes, tax authority interpretation, expiry of statutes of limitation,
tax litigation, and resolution of tax audits and disputes.
At any given time, the Group has open years outstanding in various countries and is involved in tax audits and disputes, some ofwhich may take several years to resolve. Provisions are based on best estimates and management’s judgements concerning the
likely ultimate outcome of any audit or dispute. Management considers the specific circumstances of each tax position and takes
external advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due.
At 30 March 2024 the Group recognised provisions of £91 million in respect of uncertain tax positions (increasing from £86 million
in 2023), being provisions of £131 million net of expected reimbursements of £40 million (last year: £103 million net of expected
reimbursements of £17 million). The majority of these provisions relate to the tax impact of intra-group transactions between the
UK and the various jurisdictions in which the Group operates, as would be expected for a Group operating internationally.
The Group believes that it has made adequate provision in respect of additional tax liabilities that may arise from open years, tax
audits and disputes. However, the actual liability for any particular issue may be higher or lower than the amount provided, resulting
in a negative or positive effect on the tax charge in any given year. A reduction in the tax charge may also arise for other reasons
such as an expiry of the relevant statute of limitations. Depending on the final outcome of tax audits which are currently in progress,
statute of limitations expiry, and other factors, an impact on the tax charge could arise. The tax impact of intra-group transactions is acomplex area and resolution of matters can take many years. Given the inherent uncertainty, it is difficult to predict the timing ofwhen these matters will be resolved and the quantum of the ultimate resolution. Management estimate that the outcome across all
matters under dispute or in negotiation between governments could be in the range of a decrease of £32 million, to an increase of£47 million, in the uncertain tax position over the next 12 months.

Legislative changes
The OECD Pillar Two GloBE Rules introduce a global minimum corporate tax rate of 15% applicable to multinational enterprise groups with global
revenue over €750 million. All participating OECD members are required to incorporate these rules into national legislation. The Group will be
subject to the Pillar Two Model Rules from FY 2024/25 but does not meet the threshold for application of the Pillar One transfer pricing rules.
The Group applies the temporary exception from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither
recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.
UK legislation in relation to Pillar Two was substantively enacted on 20 June 2023 and applies to the Group for the reporting period
beginning 31 March 2024. The Group has performed an analysis of the potential exposure to Pillar Two income taxes. The analysis of thepotential exposure to Pillar Two income taxes is based on the most recently submitted Country by Country Reporting available for theconstituent entities in the Group (for the 52 weeks to 1 April 2023). Based on the analysis, the transitional safe harbour relief should apply inrespect of most jurisdictions in which the Group operates. Although there are a limited number of jurisdictions where the transitional safe
harbour relief may not apply, the Group does not expect a material exposure to Pillar Two income taxes in those jurisdictions.

182

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

10. Earnings per share
The calculation of basic earnings per share is based on profit or loss attributable to owners of the Company for the year divided by
the weighted average number of ordinary shares in issue during the year. Basic and diluted earnings per share based on adjusted
profit before taxation are also disclosed to indicate the underlying profitability of the Group.

Attributable profit for the year before adjusting items1
Effect of adjusting items1 (after taxation)
Attributable profit for the year

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

270
–
270

475
15
490

1. Refer to note 6 for details of adjusting items.

The weighted average number of ordinary shares represents the weighted average number of Burberry Group plc ordinary shares inissue throughout the year, excluding ordinary shares held in the Group’s ESOP trusts and treasury shares held by the Company or its
subsidiaries. This includes the effect of the cancellation of 20.5 million shares during the period as a result of the share buyback
programmes (last year: 21.1 million). Refer to note 25 for additional information on the share buybacks.
Diluted earnings per share is based on the weighted average number of ordinary shares in issue during the year. In addition, accountis taken of any options and awards made under the employee share incentive schemes, which will have a dilutive effect when
exercised. Refer to note 28 for additional information on the terms and conditions of the employee share incentive schemes.
52 weeks to
30 March
2024
Millions

52 weeks to
1 April
2023
Millions

365.0
1.2
366.2

386.1
1.9
388.0

52 weeks to
30 March
2024
Pence

52 weeks to
1 April
2023
Pence

Earnings per share
Basic
Diluted

74.1
73.9

126.9
126.3

Adjusted earnings per share
Basic
Diluted

74.1
73.9

123.1
122.5

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

167
66
233

140
63
203

Weighted average number of ordinary shares in issue during the year
Dilutive effect of the employee share incentive schemes
Diluted weighted average number of ordinary shares in issue during the year

11. Dividends paid to owners of the Company

Prior year final dividend paid 44.5p per share (last year: 35.4p)
Interim dividend paid 18.3p per share (last year: 16.5p)
Total

A final dividend in respect of the 52 weeks to 30 March 2024 of 42.7p (last year: 44.5p) per share, amounting to £151 million, hasbeen proposed for approval by the shareholders at the Annual General Meeting subsequent to the balance sheet date. The final
dividend has not been recognised as a liability at the year end and will be paid on 2 August 2024 to the shareholders on the registerat the close of business on 28 June 2024. The ex-dividend date is 27 June 2024 and the final day for dividend reinvestment plan
(DRIP) elections is 12 July 2024.

183

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

12. Intangible assets

Cost

As at 2 April 2022
Effect of foreign exchange rate changes
Additions
Disposals
Reclassifications from assets in the course of construction
As at 1 April 2023
Effect of foreign exchange rate changes
Additions
Business combination
Disposals
Reclassifications from assets in the course of construction
As at 30 March 2024

Goodwill£m

Trademarks,
licences and otherintangible
assets£mComputersoftware£m

Intangible assets inthe course of
construction
£m

Total
£m

115
–
–
–
–
115
(6)
–
16
–
–
125

13
–
1
–
–
14
–
1
1
–
–
16

258
1
13
(42)
18
248
(2)
8
–
(5)
30
279

55
–
32
–
(18)
69
–
44
–
(22)
(30)
61

441
1
46
(42)
–
446
(8)
53
17
(27)
–
481

6
–
–
–
6
–
–
–
6

7
–
1
–
8
–
1
–
9

169
2
36
(42)
165
(2)
41
(5)
199

19
–
–
–
19
–
–
(19)
–

201
2
37
(42)
198
(2)
42
(24)
214

119
109

7
6

80
83

61
50

267
248

As at
30 March
2024
£m

As at
1 April
2023
£m

46
24
35
14
119

50
26
19
14
109

Accumulated amortisation and impairment

As at 2 April 2022
Effect of foreign exchange rate changes
Charge for the year
Disposals
As at 1 April 2023
Effect of foreign exchange rate changes
Charge for the year
Disposals
As at 30 March 2024
Net book value

As at 30 March 2024
As at 1 April 2023

Impairment testing of goodwill
The carrying value of the goodwill allocated to cash generating units:

Mainland China
South Korea
Retail and Wholesale segment1
Other
Total

1. Goodwill which arose on acquisitions of Burberry Manifattura S.R.L. and Burberry Tecnica S.R.L. has been allocated to the group of cash generating units which make up theGroup’s Retail and Wholesale operating segment cash generating unit. This reflects the lowest level at which the goodwill is being monitored by management.

The Group tests goodwill for impairment annually or when there is an indication that goodwill might be impaired. The recoverable
amount of all cash generating units has been determined on a value-in-use basis. Value-in-use calculations for each cash generating
unit are based on projected pre-tax discounted cash flows together with a discounted terminal value. The cash flows have been
discounted at pre-tax rates reflecting the Group’s weighted average cost of capital adjusted for country-specific tax rates and risks.
Where the cash generating unit has a non-controlling interest which was recognised at a value equal to its proportionate interest in
the net identifiable assets of the acquired subsidiary at the acquisition date, the carrying amount of the goodwill has been grossed
up, to include the goodwill attributable to the non-controlling interest, for the purpose of impairment testing the goodwill attributable
to the cash generating unit. The key assumptions contained in the value-in-use calculations include the future revenues, theoperating profit margins achieved and the discount rates applied.
The value-in-use calculations have been prepared using management’s cost and revenue projections for the next three years to
27 March 2027 and a longer-term growth rate of 5% to 30 March 2029. A terminal value has been included in the value-in-use
calculation based on the cash flows for the year ending 30 March 2029, incorporating the assumption that growth beyond
30 March 2029 is equivalent to nominal inflation rates, assumed to be 2%, which are not significant to the assessment.
The value-in-use estimates indicated that the recoverable amount of the cash generating unit exceeded the carrying value for each of
the cash generating units. As a result, no impairment has been recognised in respect of the carrying value of goodwill in the year.

184

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

12. Intangible assets continued
Impairment testing of goodwill continued
The goodwill arising on the acquisition of Burberry Tecnica S.R.L. has been allocated to the group of cash generating units whichmake up the Group’s retail/wholesale operating segment. This reflects the level at which the goodwill is being monitored bymanagement. For the material goodwill balances of Mainland China, South Korea and the Retail and Wholesale segment,
management has considered the potential impact of reasonably possible changes in assumptions on the recoverable amount of
goodwill. The sensitivities include applying a 10% reduction in revenue and gross profit and the associated impact on operating profit
margin from management’s base cash flow projections, considering the macroeconomic and political uncertainty risk on the Group’s
retail operations and on the global economy. Under this scenario, the estimated recoverable amount of goodwill in Mainland China,
South Korea and the Retail and Wholesale segment still exceeded the carrying value.
The pre-tax discount rates for Mainland China, South Korea and the Retail and Wholesale segment were 12%, 10% and 11%
respectively (last year: Mainland China 12%, South Korea 12%, and the Retail and Wholesale segment 12%). No reasonably possible
change in these pre-tax discount rates would result in the carrying value to exceed the estimated recoverable amount of goodwill.
The other goodwill balance of £14 million (last year: £14 million) consists of amounts relating to eight cash generating units, none ofwhich have goodwill balances individually exceeding £6 million as at 30 March 2024 (last year: £7 million).

13. Property, plant and equipment
Cost

As at 2 April 2022
Effect of foreign exchange rate changes
Additions
Disposals
Reclassifications from assets in the course of construction
As at 1 April 2023
Effect of foreign exchange rate changes
Additions
Business combination
Disposals
Reclassifications from assets in the course of construction
Reclassifications to assets held for sale
As at 30 March 2024

Freehold landand buildings£mLeaseholdimprovements£mFixtures,fittings andequipment£m

Assets in thecourse ofconstruction
£m

Total
£m

116
6
–
(1)
–
121
(2)
–
–
–
–
(28)
91

550
6
56
(53)
26
585
(27)
88
–
(69)
54
–
631

348
9
25
(27)
11
366
(8)
32
1
(47)
14
–
358

47
1
66
(1)
(37)
76
(3)
44
–
–
(68)
–
49

1,061
22
147
(82)
–
1,148
(40)
164
1
(116)
–
(28)
1,129

56
4
3
(1)
–
62
–
2
–
–
(16)
48

388
6
64
(53)
2
407
(17)
69
(69)
4
–
394

294
8
28
(27)
–
303
(8)
32
(47)
1
–
281

1
–
–
(1)
–
–
–
–
–
–
–
–

739
18
95
(82)
2
772
(25)
103
(116)
5
(16)
723

43
59

237
178

77
63

49
76

406
376

Accumulated depreciation and impairment

As at 2 April 2022
Effect of foreign exchange rate changes
Charge for the year
Disposals
Impairment charge on assets
As at 1 April 2023
Effect of foreign exchange rate changes
Charge for the year
Disposals
Impairment charge on assets
Reclassifications to assets held for sale
As at 30 March 2024
Net book value

As at 30 March 2024
As at 1 April 2023

185

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

13. Property, plant and equipment continued
During the 52 weeks to 30 March 2024, management carried out a review of retail cash generating units comprising right-of-use
asset and property, plant and equipment, for any indication of impairment or reversal of impairments previously recorded. Where
indications of impairment charges or reversals were identified, the impairment review compared the value-in-use of the cash generating
units to their net book values at 30 March 2024. The pre-tax cash flow projections used for this review were based on financial plansof expected revenues and costs of each retail cash generating unit, approved by management, reflecting their latest plans over the
next three years to 27 March 2027. For the remainder of the asset life, the cashflows assume industry growth rates of 5% and cost
inflation rates appropriate to each store’s location, followed by longer-term growth rates of mid-single digits and inflation rates
appropriate to each store’s location. The pre-tax discount rates used in these calculations were between 10.2% and 12.1% (last year:
between 11.1% and 13.7%) based on the Group’s weighted average cost of capital adjusted for country-specific borrowing costs, tax
rates and risks for those countries in which a charge or reversal was incurred. Where indicators of impairment have been identified
and the value-in-use was less than the carrying value of the cash generating unit, an impairment of property, plant and equipment
and right-of-use asset was recorded. Where the value-in-use was greater than the net book value, and the cash generating unit had
been previously impaired, the impairment was reversed, to the extent that could be supported by the value-in use and allowing forany depreciation that would have been incurred during the period since the impairment was recorded.
During the 52 weeks to 30 March 2024, a charge of £14 million (last year: net charge of £7 million) was recorded within net operating
expenses as a result of the annual review of impairment for retail store assets. A charge of £5 million (last year: charge of £2 million)
was recorded against property, plant and equipment and a charge of £9 million (last year: net charge of £5 million) was recorded
against right-of-use assets. Impairments previously charged as an adjusting item related to the impact of COVID-19 werereassessed, resulting in no impairment charge or reversal being presented as an adjusting item in the current year (last year: net
reversal of £6 million recorded against right-of-use assets). Refer to note 14 for further details of right-of-use assets. Refer to note 6
for details of adjusting items.
The impairment charge recorded in property, plant and equipment related to six retail cash generating units (last year: two retail cash
generating units) for which the total recoverable amount at the balance sheet date is £15 million (last year: £1 million).
Management has considered the potential impact of changes in assumptions on the impairment recorded against the Group’s
retail assets. Given the macroeconomic and political uncertainty risk on the Group’s retail operations and on the global economy,
management has considered sensitivities to the impairment charge as a result of changes to the estimate of future revenues
achieved by the retail stores. The sensitivities applied are an increase or decrease in revenue of 10% from the estimate used todetermine the impairment charge or reversal. We have also considered retail cash generating units with no indicators of impairment
but with a significant asset balance. It is estimated that a 10% decrease/increase in revenue assumptions for the 52 weeks to
29 March 2025, with no change to subsequent forecast revenue growth rate assumptions, would result in a less than £19 million
increase/less than £9 million decrease in the impairment charge of retail store assets in the 52 weeks to 30 March 2024.
As at 30 March 2024, the Group had one freehold property that met the criteria to be classified as held for sale. This asset is required
to be recorded at the lower of carrying value or fair value less any costs to sell. As the fair value less any costs to sell exceeded thecarrying value, the related asset was recorded at its carrying value of £12 million. The sale of this property is expected to complete
within the next 12 months.
No assets were classified as held for sale at 1 April 2023. During the 52 weeks to 1 April 2023, the sale of three freehold properties
with a carrying value of £13 million, which were previously classified as assets held for sale, was completed resulting in a net gain on
disposal of £19 million.

186

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

14. Right-of-use assets
Property rightof-use assets£m

Net book value

As at 2 April 2022
Effect of foreign exchange rate changes
AdditionsRemeasurements
Depreciation for the year
Impairment charge on right-of-use assets
Impairment reversal on right-of-use assets
As at 1 April 2023
Effect of foreign exchange rate changes
Additions
Business combination
Remeasurements
Depreciation for the year
Impairment charge on right-of-use assets
As at 30 March 2024

880
14
157
113
(212)
(10)
8
950
(27)
162
2
169
(234)
(9)
1,013

As a result of the assessment of retail cash generating units for impairment, an impairment charge of £9 million (last year: net
impairment reversal of £1 million) was recorded for impairment of right-of-use assets related to trading impacts. Refer to note 13
for further details of impairment assessment of retail cash generating units. The net impairment reversal in the prior year compriseda reversal of £6 million arising from the change in assumption due to the impact of COVID-19 on the value-in-use of retail cash
generating units and a charge of £5 million relating to other trading impacts. The reversal relating to COVID-19 was presented as an
adjusting item (refer to note 6).
The impairment charge recorded in right-of-use assets relates to seven retail cash generating units (last year: three retail cash
generating units) for which the total recoverable amount at the balance sheet date is £44 million (last year: £17 million).
At 1 April 2023, a net impairment charge of £3 million was recognised in relation to non-retail right-of-use assets arising as a result of
the Group’s restructuring programmes and was presented as an adjusting item (refer to note 6).
As a result, the impairment charge for right-of-use assets was £9 million (last year: net impairment charge of £2 million).

15. Deferred taxation
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and there is an intention to settle on a net basis, and to the same fiscal authority. The assets and liabilities presented in the
Balance Sheet, after offset, are shown in the table below:

Deferred tax assets
Deferred tax liabilities
Net amountThe movement in the deferred tax account is as follows:
At start of year
Effect of foreign exchange rate changes
Credited to the Income Statement
Business combination
Credited to Other comprehensive income(Charged)/credited to Equity
At end of year

As at
30 March
2024
£m

As at
1 April
2023
£m

208
(1)
207

197
(1)
196

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

196
(11)
24
(1)
1
(2)
207

174
2
18
–
–
2
196

187

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

15. Deferred taxation continued
The movement in the net deferred tax balances during the year is as follows:
Unrealised
inventory profit
and other
Capitalinventory
allowances
provisions£m£m

As at 2 April 2022
Effect of foreign exchange rate changes
Credited/(charged) to the Income Statement
Credited to Equity
As at 1 April 2023
Effect of foreign exchange rate changes
Credited/(charged) to the Income Statement
Business combination
Credited to Other comprehensive income
Charged to Equity
As at 30 March 2024

19
1
(6)
–
14
(1)
(11)
–
–
–
2

97
1
10
–
108
(7)
23
–
–
–
124

Share
schemes£m

Unused tax
losses£m

Leases£m

Other1
£m

Total
£m

5
–
1
2
8
–
(3)
–
–
(2)
3

3
–
11
–
14
–
15
–
–
–
29

32
–
(1)
–
31
(1)
5
–
–
–
35

18
–
3
–
21
(2)
(5)
(1)
1
–
14

174
2
18
2
196
(11)
24
(1)
1
(2)
207

1. Deferred balances within Other relate largely to temporary differences arising on other provisions and accruals.

Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related benefit throughfuture taxable profits is probable. The Group did not recognise deferred tax assets of £50 million (last year: £46 million) in respect oflosses and temporary timing differences amounting to £201 million (last year: £181 million) that can be set off against future taxable
income. There is a time limit for the recovery of £1 million of these potential assets (last year: £6 million) which ranges from one to
five years (last year: one to seven years).
The Group has recognised a deferred tax asset of £35 million (not including profit in stock consolidation adjustments) in Mainland
China, of which £25 million arises due to losses in FY 2022/23 and FY 2023/24. Group financial forecasts indicate that the subsidiaryin Mainland China is expected to generate future taxable profits which will enable the deferred tax asset to be utilised in full.
During the 52 weeks to 30 March 2024, the Group adopted the IAS 12 amendment for Deferred Tax related to Assets and Liabilities
arising from a Single Transaction. For jurisdictions where tax deductions do not follow IFRS 16 accounting, the Group recognises adeferred tax asset on the lease liability and a separate deferred tax liability on the right-of-use asset. The Group applies jurisdictional
netting and the net position is included in the “Leases” column above.
Included within other temporary differences above is a deferred tax liability of £1 million (last year: £1 million) relating to unremitted
overseas earnings. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where
the Group is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable
future, or where no liability would arise on the remittance. The aggregate amount of temporary differences in respect of unremitted
earnings is £255 million (last year: £281 million).

188

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

16. Trade and other receivables

Non-current
Other financial receivables1
Other non-financial receivables2
Prepayments
Total non-current trade and other receivables
Current
Trade receivables
Provision for expected credit losses
Net trade receivables
Other financial receivables1
Other non-financial receivables2
Prepayments
Accrued income
Total current trade and other receivables
Total trade and other receivables

As at
30 March
2024
£m

As at
1 April
2023
£m

47
–
5
52

45
2
5
52

189
(10)
179
27
86
33
15
340
392

184
(7)
177
25
59
32
14
307
359

1. Other financial receivables include rental deposits and other sundry debtors.
2. Other non-financial receivables relates primarily to indirect taxes and other taxes and duties.

Included in total trade and other receivables are non-financial assets of £124 million (last year: £98 million).
The Group’s impairment policies and the calculation of any allowances for credit losses are detailed in note 27 in the credit
risk section.

17. Inventories

Raw materials
Work in progress
Finished goods
Total inventories

Total inventories, gross
Provisions
Total inventories, net

As at
30 March
2024
£m

As at
1 April
2023
£m

29
3
475
507

15
1
431
447

As at
30 March
2024
£m

As at
1 April
2023
£m

580
(73)
507

504
(57)
447

Inventory provisions of £73 million (last year: £57 million) are recorded, representing 12.6% (last year: 11.4%) of the gross value of
inventory. The provisions reflect management’s best estimate of the net realisable value of inventory, where this is considered to belower than the cost of the inventory.
The cost of inventories recognised as an expense and included in cost of sales amounted to £922 million (last year: £874 million).
Taking into account factors impacting the inventory provisioning including the proportion of inventory sold through loss making
channels being higher or lower than expected, management considers that a reasonable potential range of outcomes could resultin an increase in inventory provisions of £15 million or a decrease in inventory provisions of £22 million in the next 12 months.
This would result in a potential range of inventory provisions of 8.8% to 15.3% as a percentage of the gross value of inventory as at
30 March 2024.
The net movement in inventory provisions included in cost of sales for the 52 weeks to 30 March 2024 was a charge of £39 million(last year: release of £1 million). The total reversal of inventory provisions during the current year, which is included in the net
movement, was £15 million (last year: reversal of £22 million). In the prior year, a reversal of £1 million was included within both ofthese amounts upon reassessment of the provision related to the impact of COVID-19 and was presented as an adjusting item.
Refer to note 6 for details of adjusting items.

189

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

18. Derivative financial instruments
Master netting arrangements
The Group’s forward foreign exchange contracts are entered into under International Swaps and Derivatives Association (ISDA)
master netting arrangements. In general, under such agreements the amounts owed by each counterparty on a single day in respectof all transactions outstanding in the same currency are aggregated into a single amount that is payable by one party to the other.
In certain circumstances, such as when a default occurs, all outstanding transactions under the agreement are terminated, thetermination value is assessed and only a single net amount is payable in settlement of all transactions. The ISDA agreements do notmeet the criteria for offsetting in the Balance Sheet as the Group’s right to offset is enforceable only on the occurrence of future
events such as default. The Group has amended the ISDA agreement with two banks to require it to net settle its forward foreignexchange contracts. There were no derivatives subject to net settlement agreements and offset on the Balance Sheet at 30 March2024 (last year: nil). The Group’s Balance Sheet would not be materially different if it had offset its forward foreign exchange
contracts and equity swap contracts subject to the standard ISDA agreements.

Derivative financial assets

Forward foreign exchange contracts – fair value hedging instrument: cash flow hedges
Forward foreign exchange contracts – fair value through profit and loss1
Equity swap contracts – fair value through profit and loss
Total position
Comprising:Total current position

As at
30 March
2024
£m

As at
1 April
2023
£m

–
2
–
2

–
4
3
7

2

7

1. Forward foreign exchange contracts classified as fair value through profit and loss are used for cash management and hedging monetary assets and liabilities. At 30 March 2024,
all such contracts had maturities of no greater than three months from the balance sheet date (last year: no greater than three months from the balance sheet date).

Derivative financial liabilities

Forward foreign exchange contracts – fair value hedging instrument: cash flow hedges
Forward foreign exchange contracts – fair value through profit and loss1
Equity swap contracts – fair value through profit and loss
Total position
Comprising:Total current position

As at
3 March
2024
£m

As at
1 April
2023
£m

(2)
(1)
(1)
(4)

(1)
–
–
(1)

(4)

(1)

1. Forward foreign exchange contracts classified as fair value through profit and loss are used for cash management and hedging monetary assets and liabilities. At 30 March
2024, all such contracts had maturities of no greater than three months from the balance sheet date (last year: no greater than two months from the balance sheet date).

Net derivative financial instruments
The notional principal amounts of the outstanding forward foreign exchange and equity swap contracts at year end are:

Forward foreign exchange contracts – fair value hedging instrument: cash flow hedges
Forward foreign exchange contracts – fair value through profit and loss
Equity swap contracts – fair value through profit and loss

190

As at
30 March
2024
£m

As at
1 April
2023
£m

71
439
4

155
332
7

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

18. Derivative financial instruments continued
Effect of hedge accounting on the financial position and performance
The effects of the foreign currency cash flow hedging instruments on the Group’s financial position and performance are as follows:
As at
30 March
2024

As at
1 April
2023

Carrying amount (assets)
Notional amount
Maturity date–––

Hedge ratio
Change in spot value of outstanding hedging instruments since start of year
Change in value of hedged item used to determine hedge effectivenessWeighted average hedged rate of outstanding contracts (including forward points) – EUR

–
–
–
–

–
£18m
Jun 2023 –Nov 2023
1:1––
1.1369(£2m)£71m
May 2024 –Aug 2024
1:1
(£2m)
£2m
1.1322(£1m)£137m
Jun 2023 –May 2024
1:1
£1m
(£1m)
1.1221

Foreign currency forwards

Carrying amount (liabilities)
Notional amount
Maturity date
Hedge ratio
Change in spot value of outstanding hedging instruments since start of year
Change in value of hedged item used to determine hedge effectivenessWeighted average hedged rate of outstanding contracts (including forward points) – EUR

The foreign currency forwards are denominated in the same currency as the highly probable future inventory purchases (EUR),
therefore the hedge ratio is 1:1.
The contractual maturity profile of non-current financial liabilities is shown in note 27. For further details of cash flow hedging,refer to note 27 in the market risk section.

19. Cash and cash equivalents

Cash and cash equivalents held at amortised cost
Cash at bank and in hand
Short-term deposits
Cash and cash equivalents held at fair value through profit and loss
Short-term deposits
Total

As at
30 March
2024
£m

As at
1 April
2023
£m

180
83
263

152
77
229

178
441

797
1,026

Cash and cash equivalents classified as fair value through profit and loss relate to deposits held in low volatility net asset value
money market funds. The cash is available immediately and, since the funds are managed to achieve low volatility, no significant
change in value is anticipated. The funds are monitored to ensure there are no significant changes in value.
As at 30 March 2024 and 1 April 2023, no impairment losses were identified on cash and cash equivalents held at amortised cost.

191

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

20. Trade and other payables

Non-current
Other payables1
Deferred income and non-financial accruals
Contract liabilities
Total non-current trade and other payables
Current
Trade payables
Other taxes and social security costs
Other payables1
Accruals
Deferred income and non-financial accruals
Contract liabilities
Deferred consideration2
Total current trade and other payables
Total trade and other payables

As at
30 March
2024
£m

As at
1 April
2023
£m

3
9
51
63

–
20
57
77

180
45
21
165
11
12
5
439
502

186
50
10
199
14
13
5
477
554

1. Other payables comprise interest and employee-related liabilities.
2. Deferred consideration relates to the acquisition of the economic right to the non-controlling interest in Burberry Middle East LLC on 22 April 2016. In the 52 weeks
to 30 March 2024 no payments were made in relation to Burberry Middle East LLC (last year: £6 million). Contingent payments of £5 million remain outstanding at
30 March 2024, which will be paid once all required documentation is complete.

Included in total trade and other payables are non-financial liabilities of £128 million (last year: £153 million).

Contract liabilities
Retail contract liabilities relate to unredeemed balances on issued gift cards and similar products, and advanced payments received
for sales which have not yet been delivered to the customer. Licensing contract liabilities relate to deferred revenue arising from theupfront payment for the Beauty licence which is being recognised in revenue over the term of the licence on a straight-line basis,
reflecting access to the trademark over the licence period to 2032.

Retail contract liabilities
Licensing contract liabilities
Total contract liabilities

As at
30 March
2024
£m

As at
1 April
2023
£m

6
57
63

6
64
70

The amount of revenue recognised in the year relating to contract liabilities at the start of the year is set out in the following table.
All revenue in the year relates to performance obligations satisfied in the year. All contract liabilities at the end of the year relate to
unsatisfied performance obligations.

Retail revenue relating to contract liabilities
Deferred revenue from Beauty licence
Revenue recognised that was included in contract liabilities at the start of the year

192

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

3
7
10

4
6
10

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

21. Lease liabilities
Property leaseliabilities
£m

1,058

Balance as at 2 April 2022

20

Effect of foreign exchange rate changes

157

Created during the year

(243)

Amounts paid1

33

Discount unwind

98

Remeasurements

2

1,123

Balance as at 1 April 2023

(30)

Effect of foreign exchange rate changes

159

Created during the year

1

Business combination(274)

Amounts paid1

43

Discount unwind

166

Remeasurements2
Balance as at 30 March 2024

Analysis of total lease liabilities:
Non-current
Current
Total

1,188
As at
30 March
2024
£m

As at
1 April
2023
£m

959
229
1,188

902
221
1,123

1. The amount paid of £274 million (last year: £243 million) includes £231 million (last year: £210 million) arising as a result of a financing cash outflow and £43 million (last year:£33 million) arising as a result of an operating cash outflow.
2. Remeasurements relate largely to changes in the lease liabilities that arise as a result of extending the lease term on an existing lease, management’s reassessment of thelease term based on existing break or extension options in the contract, as well as those linked to an inflation index or rate review. In the prior year, remeasurements included
COVID-19-related rent forgiveness of £13 million which was recognised as a credit in the Income Statement and was included as an adjusting item. Refer to note 6.

The Group enters into property leases for retail properties, including stores, concessions, warehouse and storage locations and officeproperty. The remaining lease terms for these properties range from a few months to 16 years (last year: few months to 15 years).
Many of the leases include break options and/or extension options to provide operational flexibility. Some of the leases for concessions
have rolling lease terms or rolling break options. Management assess the lease term at inception based on the facts and circumstances
applicable to each property including the period over which the investment appraisal was initially considered.
Potential future undiscounted lease payments related to periods following the exercise date of an extension option not includedin the lease term, and therefore not included in lease liabilities are approximately £434 million (last year: £399 million) in relation
to the next available extension option and are assessed as not reasonably certain to be exercised. Potential future undiscounted
lease payments related to periods following the exercise date of a break option not included in the lease term, and therefore notincluded in lease liabilities, are approximately £113 million (last year: £130 million) in relation to break options which are expected to
be exercised. During the 52 weeks to 30 March 2024, significant judgements regarding breaks and options in relation to individuallymaterial leases resulted in approximately £100 million (last year: £38 million) in undiscounted future cash flows not being included in
the initial right-of-use assets and lease liabilities.
Management reviews the retail lease portfolio on an ongoing basis, taking into account retail performance and future trading
expectations. Management may exercise extension options and negotiate lease extensions or modifications. In other instances,management may exercise break options, negotiate lease reductions or decide not to negotiate a lease extension at the endof the lease term. The most significant factor impacting future lease payments is changes management choose to make to thestore portfolio.
Future increases and decreases in rent linked to an inflation index or rate review are not included in the lease liability until the change
in cash flows is legally agreed. Approximately 19% (last year: 18%) of the Group’s lease liabilities are subject to inflation linked
reviews and 32% (last year: 30%) are subject to rent reviews. Rental changes linked to inflation or rent reviews typically occur on anannual basis.
Many of the retail property leases also incur payments based on a percentage of revenue achieved at the location. Changes in future
variable lease payments will typically reflect changes in the Group’s retail revenues, including the impact of regional mix. The Group
expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years.
The Group also enters into non-property leases for equipment, advertising fixtures and machinery. Generally, these leases do notinclude break or extension options. The most significant impact to future cash flows relating to leased equipment, which are primarily
short-term leases, would be the Group’s usage of leased equipment to a greater or lesser extent.

193

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

21. Lease liabilities continued
The Group’s accounting policy for leases is set out in note 2. Details of income statement charges and income from leases are set out
in note 5. The right-of-use asset categories on which depreciation is incurred are presented in note 14. Interest expense incurred onlease liabilities is presented in note 8. Commitments relating to off-balance sheet leases are presented in note 26. The maturity ofundiscounted future lease liabilities are set out in note 27.
Total cash outflows in relation to leases in the 52 weeks ended 30 March 2024 are £417 million (last year: £396 million). This relates
to payments of £231 million on lease principal (last year: £210 million), £43 million on lease interest (last year: £33 million),£113 million on variable lease payments (last year: £122 million), and £30 million on other lease payments principally relating toshort-term leases and leases in holdover (last year: £31 million).

22. Provisions for other liabilities and charges
Balance as at 2 April 2022
Effect of foreign exchange rate changes
Created during the year
Utilised during the year
Released during the year
Balance as at 1 April 2023
Effect of foreign exchange rate changes
Created during the year
Utilised during the year
Released during the year
Balance as at 30 March 2024

Property obligations
£m

Other
£m

Total
£m

49
–
7
(3)
(4)
49
(3)
5
(1)
(2)
48

15
2
5
(1)
(8)
13
–
4
(1)
(7)
9

64
2
12
(4)
(12)
62
(3)
9
(2)
(9)
57

The net charge in the year for property obligations is £3 million (last year: £3 million), relating to additional property reinstatement
costs. The net credit in the year for other provisions of £3 million (last year: net credit of £3 million) includes charges of £4 million(last year: £5 million) relating to expected future outflows for property disputes, employee matters and tax compliance, and reversalsof £7 million (last year: £8 million) relating to employee matters and other property matters.
As at
30 March
2024
£m

As at
1 April
2023
£m

37
20
57

40
22
62

Analysis of total provisions:Non-current
Current
Total

The non-current provisions relate to property reinstatement costs which are expected to be utilised within 14 years (last year:
15 years).

23. Bank overdrafts
Included within bank overdrafts is £78 million (last year: £65 million) representing balances on cash pooling arrangements in
the Group.
The Group has a number of committed and uncommitted arrangements agreed with third parties. At 30 March 2024, the Group held
£1 million (last year: £nil) bank overdrafts excluding balances on cash pooling arrangements.
The fair value of overdrafts approximates the carrying amount because of the short maturity of these instruments.

24. Borrowings
On 21 September 2020, Burberry Group plc issued medium term notes with a face value of £300 million and 1.125% coupon maturing
on 21 September 2025 (the sustainability bond). Proceeds from the sustainability bond have been used by the Group to finance projects
which support the Group’s sustainability agenda. There are no financial penalties for not using the proceeds as anticipated. Interest on
the sustainability bond is payable semi-annually. The carrying value of the bond at 30 March 2024 is £299 million (last year: £298
million); all movements on the bond are non-cash. The fair value of the bond at 30 March 2024 is £281 million (last year: £273 million).
On 26 July 2021, the Group entered into a £300 million multi-currency sustainability-linked revolving credit facility (RCF) with a
syndicate of banks, maturing on 26 July 2026. There were no drawdowns or repayments of the RCF during the current or previous
year, and at 30 March 2024 there were no outstanding drawings.
The Group is in compliance with the financial and other covenants within the facilities above and has been in compliance throughout
the financial period.

194

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

25. Share capital and reserves
Allotted, called up and fully paid share capital

Ordinary shares of 0.05p (last year: 0.05p) each
As at 2 April 2022
Allotted on exercise of options during the year
Cancellation of shares
As at 1 April 2023
Allotted on exercise of options during the year
Cancellation of shares
As at 30 March 2024

Number£m

405,107,301
236,123(21,075,496)
384,267,928
51,904(20,504,089)
363,815,743

0.2
–
–
0.2
–
–
0.2

The Company has a general authority from shareholders, renewed at each Annual General Meeting, to repurchase a maximum of 10%
of its issued share capital. During the 52 weeks to 30 March 2024, the Company entered into agreements to purchase, at fair value,
a total of £400 million of its own shares, excluding stamp duty and fees, through two share buyback programmes of £200 million
each (last year: two share buyback programmes of £200 million each). Both programmes were completed during the year.
The cost of own shares purchased by the Company, as part of a share buyback programme, is offset against retained earnings, as
the amounts paid reduce the profits available for distribution by the Company. When shares are cancelled, a transfer is made fromretained earnings to the capital reserve, equivalent to the nominal value of the shares purchased and subsequently cancelled.
In the 52 weeks to 30 March 2024, 20.5 million shares were cancelled (last year: 21.1 million).
As at 30 March 2024 the Company held 5.2 million treasury shares (last year: 6.1 million), with a market value of £63 million (last year:£157 million) based on the share price at the reporting date. The treasury shares held by the Company are related to the sharebuyback programme completed during the 53 weeks to 2 April 2022. During the 52 weeks to 30 March 2024, 0.9 million treasury
shares were transferred to ESOP trusts (last year: 2.3 million). During the 52 weeks to 30 March 2024, no treasury shares werecancelled (last year: none).
The cost of shares purchased by ESOP trusts are offset against retained earnings, as the amounts paid reduce the profits available
for distribution by the Company. As at 30 March 2024, the cost of own shares held by ESOP trusts and offset against retained
earnings is £34 million (last year: £42 million). As at 30 March 2024, the ESOP trusts held 1.9 million shares (last year: 2.3 million) in
the Company, with a market value of £23 million (last year: £60 million). In the 52 weeks to 30 March 2024 the ESOP trusts and theCompany have waived their entitlement to dividends.
Other reserves in the Statement of Changes in Equity consist of the capital reserve, the foreign currency translation reserve, and thehedging reserves. The hedging reserves consist of the cash flow hedge reserve and the net investment hedge reserve.
Hedging reserves

Balance as at 2 April 2022
Other comprehensive income:Cash flow hedges – gains deferred in equity
Foreign currency translation differences
Tax on other comprehensive income
Total comprehensive income for the year
Balance as at 1 April 2023
Other comprehensive income:Cash flow hedges – losses deferred in equity
Cash flow hedges – transferred to income
Foreign currency translation differences
Tax on other comprehensive income
Total comprehensive income for the year
Balance as at 30 March 2024

Capitalreserve£m

Cash flow
hedges£m

Net investment
hedge
£m

Foreign currencytranslation
reserve
£m

Total
£m

41

(1)

5

218

263

–
–
–
–
41

1
–
(1)
–
(1)

–
–
–
–
5

–
14
–
14
232

1
14
(1)
14
277

–
–
–
–
–
41

(4)
1
–
1
(2)
(3)

–
–
–
–
–
5

–
–
(34)
–
(34)
198

(4)
1
(34)
1
(36)
241

As at 30 March 2024 the amount held in the hedging reserve relating to matured net investment hedges is £5 million net of tax(last year: £5 million).

195

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

26. Commitments
Financial commitments
The Group leases various retail stores, offices, warehouses and equipment under non-cancellable lease arrangements. The liabilities
for these leases are recorded on the Group’s Balance Sheet when the Group obtains control of the underlying asset. The Group has
additional commitments relating to leases where the Group has entered into an obligation but does not yet have control of theunderlying asset. The future lease payments to which the Group is committed, over the expected lease term, which are not recordedon the Group’s Balance Sheet are as follows:

Amounts falling due:Within 1 year
Between 2 and 5 years
After 5 years
Total

As at
30 March
2024
£m

As at
1 April
2023
£m

2
49
120
171

–
14
9
23

During the 52 weeks to 30 March 2024, the Group entered into two significant retail store lease agreements in EMEIA for which
possession of the property is not yet obtained. The Group has committed to £138 million in future undiscounted lease payments inrelation to these leases, which have expected lease terms of 12 and 15 years. A judgement has been made that the Group isreasonably certain to exercise an extension option in relation to one of these leases, representing £38 million of the commitment.

Capital commitments
Contracted capital commitments represent contracts entered into by the year end for future work in respect of major capital
expenditure projects relating to property, plant and equipment and intangible assets, which are not recorded on the Group’s Balance
Sheet and are as follows:

Capital commitments contracted but not provided for:
Property, plant and equipment
Intangible assets
Total

196

As at
30 March
2024
£m

As at
1 April
2023
£m

67
4
71

38
3
41

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

27. Financial risk management
The Group’s principal financial instruments comprise derivative instruments, cash and cash equivalents, borrowings (including
overdrafts), deferred consideration, trade and other receivables, and trade and other payables arising directly from operations.
The Group’s activities expose it to a variety of financial risks: market risks (including foreign exchange risk and interest rate risk),credit risk, liquidity risk and capital risk.
Risk management is carried out by the Group treasury department (Group Treasury) based on forecast business requirements
to reduce financial risk and to ensure sufficient liquidity is available to meet foreseeable needs and to invest in cash and cash
equivalents safely and profitably. The Group uses derivative instruments to hedge certain risk exposures. Group Treasury does notoperate as a profit centre and transacts only in relation to the underlying business requirements. The policies of Group Treasury arereviewed and approved by the Board of Directors annually.

Market risk
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from various non-sterling currencies.
The Group’s Income Statement is affected by transactions denominated in foreign currency. To reduce exposure to currency
fluctuations, the Group has a policy of hedging foreign currency denominated transactions by entering into forward foreignexchange contracts (refer to note 18). These transactions are recorded as cash flow hedges. The Group’s foreign currencytransactions arise principally from purchases and sales of inventory.
The Group’s treasury risk management policy is to hedge, prior to market opening, 70-90% of its anticipated third party foreign
currency exposure by currency, by season and where the net currency exposure is greater than £20 million. Currently, the Group
does not hedge anticipated intercompany foreign currency transactions. The Group uses forward exchange contracts to hedge its
currency risk.
The Group designates the spot component of foreign currency forwards in hedge relationships and applies a ratio of 1:1. The forward
elements of the foreign currency forward are excluded from designation of the hedging instrument and are separately accounted for
as a cost of hedging and recognised in operating expenses on a discounted basis.
The Group determines the existence of an economic relationship between the hedging instrument and the hedged item based on thecurrency, amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging
relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the dollar
offset method.
In these hedge relationships, ineffectiveness may arise if the timing of the forecast transaction changes from what was originallyestimated, or if there are changes in the credit risk of the Group or the derivative counterparty. There was no ineffectiveness in the
52 weeks ending 30 March 2024 (last year: no ineffectiveness).
The Group monitors the desirability of hedging the net assets of overseas subsidiaries when translated into sterling for reporting
purposes. The Group would use forward foreign exchange contracts to hedge net assets of overseas subsidiaries, relating to surplus
cash whose remittance is foreseeable. There were no outstanding net investment hedges as at 30 March 2024 (last year: nooutstanding net investment hedges).
At 30 March 2024, the Group has performed a sensitivity analysis to determine the effect of sterling strengthening/weakening by
10% (last year: 10%) against other currencies with all other variables held constant. The effect on translating foreign currency
denominated net cash, trade, intercompany and other financial receivables and payables and financial instruments at fair value
through profit or loss as at 30 March 2024 would have been to increase/decrease operating profit for the year by £4 million (lastyear: increase/decrease £4 million) on a post-tax basis. The effect on translating forward foreign exchange contracts designated as
cash flow hedges as at 30 March 2024 would have been to decrease/increase equity by £6 million (last year: decrease/increase£12 million) on a post-tax basis.
The following table shows the extent to which the Group has monetary assets and liabilities at the year end in currencies other thanthe local currency of operation, after accounting for the effect of any specific forward foreign exchange contracts used to manage
currency exposure. Monetary assets and liabilities refer to cash, deposits, overdrafts, borrowings and other amounts to be received
or paid in cash. Amounts exclude intercompany balances which eliminate on consolidation. Foreign exchange differences on
retranslation of these assets and liabilities are recognised in net operating expenses.
As at 1 April 2023

As at 30 March 2024

Sterling
US Dollar
Euro
Chinese Yuan Renminbi
Other currencies
Total

Monetary
assets£m

Monetary
liabilities
£m

1
1
58
7
5
72

(2)
(6)
(66)
–
(33)
(107)

Net
£m

Monetary
assets£m

Monetary
liabilities
£m

Net
£m

(1)
(5)
(8)
7
(28)
(35)

–
1
40
5
5
51

(2)
(18)
(59)
–
(34)
(113)

(2)
(17)
(19)
5
(29)
(62)

197

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Financial Statements | Notes to the Financial Statements

27. Financial risk management continued
Market risk continued
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates primarily to cash, borrowings, short-term deposits
and overdrafts.
The floating rate financial liabilities at 30 March 2024 are £78 million (last year: £65 million) due to cash pool overdrafts. The fixed
rate financial liabilities at 30 March 2024 are borrowings of £299 million (last year: £298 million). If interest rates on floating ratefinancial liabilities had been 100 basis points higher/lower (last year: 100 basis points), excluding the impact on cash pool overdraft
balances and with all other variables held constant, post-tax profit for the year would have been £nil (last year: £nil) lower/higher,
as a result of higher/lower interest expense.
The floating rate financial assets as at 30 March 2024 comprise short-term deposits of £261 million (last year: £874 million), interest
bearing current accounts of £nil (last year: £2 million) and cash pool asset balances of £85 million (last year: £67 million). At 30 March
2024, if interest rates on floating rate financial assets had been 100 basis points higher/lower (last year: 100 basis points), excluding
the impact on cash pool asset balances and with all other variables held constant, post-tax profit for the year would have been
£4 million (last year: £8 million) higher/lower, as a result of higher/lower interest income.

Credit risk
Trade receivables
The Group has no significant concentrations of credit risk. The trade receivables balance is spread across a large number of different
customers with no single debtor during the year representing more than 6% of the total balance due (last year: 5%). The Group has
policies in place to ensure that wholesale sales are made to customers with an appropriate credit history. Sales to retail customers
are made in cash or via major credit cards. In some retail locations, where the Group’s store is contained within a department store ormall, for example a concession, the sales proceeds may be initially held by the operator of the wider location, giving rise to retaildebtors. In addition, receivables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts
is not significant and default rates have historically been very low.
The Group applies the simplified approach when measuring the trade receivable expected credit losses. The approach uses a
lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on segment,
geographical region and the days past due. The expected loss rates are reviewed annually, or when there is a significant change inexternal factors potentially impacting credit risk, and are updated where management’s expectations of credit losses change.
No changes have been made to the expected loss rates during the 52 weeks to 30 March 2024.
The expected credit loss allowance for receivables was determined as follows:

As at 30 March 2024

Trade receivables
Weighted average expected loss rate %Gross carrying amount of trade receivables
Loss allowance1

Current£m

Less than
1 monthoverdue£mLess than
2 months
overdue£mLess than
3 months
overdue£mOver
3 months
overdue
£m

Total
£m

2%
154
(3)

5%
18
(1)

10%
6
(1)

12%
4
(1)

39%
7
(4)

189
(10)

2%
151
(3)

4%
19
(1)

6%
8
–

27%
3
–

37%
3
(3)

184
(7)

As at 1 April 2023

Trade receivables
Weighted average expected loss rate %Gross carrying amount of trade receivables
Loss allowance1
1. The loss allowance contains expected credit loss and specific loss provisions.

198

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Financial Statements | Notes to the Financial Statements

27. Financial risk management continued
Credit risk continued
Trade receivables continued
The closing loss allowances for receivables reconcile as follows:
Receivables£m

As at 2 April 2022
Effect of foreign exchange rate changes
Impairment provision recognised in profit or loss during the year
Receivables written off during the year as uncollectable
Unused amount reversed
As at 1 April 2023
Effect of foreign exchange rate changes
Impairment provision recognised in profit or loss during the year
Receivables written off during the year as uncollectable
Unused amount reversed
As at 30 March 2024

7
–
3
(1)
(2)
7
–
6
(1)
(2)
10

In aggregate, as at 30 March 2024, the movement in the impairment provision on trade and other receivables and recorded in the
Income Statement was a net charge of £4 million (last year: £1 million), all of which relates to contracts with customers.
The maximum exposure to credit risk at the reporting date with respect to trade and other receivables is approximated by the
carrying amount on the Balance Sheet.

Receivables excluding trade receivables
The counterparty credit risk of other receivables is reviewed on a regular basis and the impairment is assessed as follows:
At inception the receivable is recorded net of expected 12 month credit losses. If a significant change in the credit risk occurs during
the life of the receivable, credit losses are recorded in the profit and loss account and the effective interest is calculated using thegross carrying amount of the asset. If a loss event occurs, the effective interest is calculated using the amortised cost of the asset
net of any credit losses.
During the year ended 31 March 2013, the Group entered into a retail leasing arrangement in the Republic of Korea. As part of thisarrangement, a KRW 27 billion (£19 million) 15 year interest-free loan was provided to the landlord. The Group holds a registeredmortgage over the leased property for the equivalent value of the loan which acts as collateral. At 30 March 2024, the discounted fairvalue of the loan is £13 million (last year: £14 million). The book value of the loan, recorded at amortised cost, is £14 million (last year:£14 million). Other than this arrangement, the Group does not hold any other collateral as security. Management considers that the
security provided by the mortgage is sufficient risk mitigation and hence the credit loss relating to this receivable is not significant.

Other financial assets
With respect to credit risk arising from other financial assets, which comprise cash and short-term deposits and certain derivative
instruments, the Group’s exposure to credit risk arises from the default of the counterparty with a maximum exposure equal to thecarrying value of these instruments. The Group has policies that limit the amount of credit exposure to any financial institution andonly deposits funds with independently rated financial institutions with a minimum rating of ‘A’ other than where required for
operational purposes. A total of £8 million (last year: £6 million) was held with institutions with a rating below ‘A’ at 30 March 2024.
These amounts are monitored on a weekly basis by the Treasury Committee.

199

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Financial Statements | Notes to the Financial Statements

27. Financial risk management continued
Liquidity risk
The Group’s financial risk management policy aims to ensure that sufficient cash is maintained to meet foreseeable needs and closeout market positions. Due to the dynamic nature of the underlying business, Group Treasury aims to maintain flexibility in funding bykeeping committed credit lines available. For further details, refer to notes 23 and 24.
All short-term trade and other payables, accruals, and bank overdrafts mature within one year or less. The carrying value of all
financial liabilities due in less than one year is equal to their contractual undiscounted cash flows, with the exception of leaseliabilities. The undiscounted contractual cash flows for lease liabilities due in less than one year is £282 million (last year:£237 million).
The maturity profile of the contractual undiscounted cash flows of the Group’s non-current financial liabilities, excluding derivatives
used for hedging, is as follows:
As at 30 March 2024

In more than 1 year, but not more than 2 years
In more than 2 years, but not more than 3 years
In more than 3 years, but not more than 4 years
In more than 4 years, but not more than 5 years
In more than 5 years
Total financial liabilities

Lease
liabilities
£m

Other
£m

228
181
161
108
459
1,137

302
–
–
–
1
303

As at 1 April 2023
Total
£m

Lease
liabilities
£m

Other
£m

Total
£m

530
181
161
108
460
1,440

227
186
142
122
330
1,007

–
300
–
–
–
300

227
486
142
122
330
1,307

As at 30 March 2024, other non-current financial liabilities relate to borrowings of £299 million (last year: borrowings of£298 million). Refer to note 24.

Capital risk
The Board reviews the Group’s capital allocation policy annually. The Group’s capital allocation framework defines its priorities
for uses of cash, underpinned by its principle to maintain a strong balance sheet with a solid investment grade credit rating.
The framework has four priorities for the use of cash generated from operations:• re-investment in the business to drive organic growth• maintaining a progressive dividend policy• continuing to pursue selective inorganic strategic investment and• to the extent that there is surplus capital to these needs, providing additional returns to shareholders
At 30 March 2024, the Group had net cash of £362 million (last year: £961 million), borrowings of £299 million (last year: £298 million)
and total equity excluding non-controlling interests of £1,147 million (last year: £1,533 million). The borrowings at 30 March 2024
relate to medium term notes with a face value of £300 million (last year: £300 million). For further details, refer to note 24. Potential
additional sources of funding available to the Group include undrawn and additional bank facilities, longer-term debt and equity
funding. The Group’s current capital resources, together with the potential additional sources of funding, are considered sufficient toaddress the Group’s capital risk.

200

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Financial Statements | Notes to the Financial Statements

28. Employee costs
Staff costs, including the cost of Directors, incurred during the year are as shown below. Directors’ remuneration, which is separately
disclosed in the Directors’ Remuneration Report on pages 125 to 142 and forms part of these financial statements, includes, for thoseshare options and awards where performance obligations have been met, the notional gains arising on the future exercise but
excludes the charge in respect of these share options and awards recognised in the Group Income Statement.

Wages and salaries
Social security costs
Pension costs
Termination benefits
Share-based compensation (all awards and options settled in shares)
Total

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

474
56
21
551
5
16
572

468
60
20
548
8
19
575

Employee costs for the 52 weeks to 1 April 2023 included a charge of £10 million arising as a result of the Group’s restructuring
programme which was presented as an adjusting item. Refer to note 6 for further details.
Pension costs include contributions to the Group’s defined contribution plan for eligible employees.
The average number of full-time equivalent employees (including Executive Directors) during the year was as follows:
Number of employees

EMEIA1
Americas
Asia PacificTotal

52 weeks to
30 March
2024

52 weeks to
1 April
2023

4,591
1,291
3,287
9,169

4,394
1,303
3,171
8,868

1. EMEIA comprises Europe, Middle East, India and Africa.

Shares and share options granted to Directors and employees
The Group operates a number of equity-settled share-based compensation schemes for its Directors and employees; the fair value
charge relating to these schemes is £16 million (last year: £19 million). Details of each of these schemes are set out in this note.
The share option schemes have been valued using the Black-Scholes option pricing model. The share awards have been valued using
the closing price of an ordinary share at the date of grant.
The key inputs used in the Black-Scholes pricing model to determine the fair value include: the share price at the commencement
date; the exercise price attached to the option; the expected life of the option; an appropriate risk-free interest rate; a dividend yielddiscount for those schemes that do not accrue dividends during the course of the vesting period; and expected share price volatility,
which is determined by calculating the historical annualised standard deviation of the market price of Burberry Group plc shares overa period of time, prior to the grant, equivalent to the expected life of the option.
Where applicable, equity swaps have been entered into to cover future employer’s national insurance liability (or overseas
equivalent) that may arise in respect of these schemes.

201

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Financial Statements | Notes to the Financial Statements

28. Employee costs continued
Shares and share options granted to Directors and employees continued
The Burberry Share Plan 2020 (the BSP)
The BSP was approved by shareholders and adopted by the Company in the year ended 27 March 2021 to replace the Burberry Groupplc Executive Share Plan (ESP) as the Group’s main long-term incentive plan.
Under the BSP rules, participants may be awarded either conditional share awards or phantom awards, up to a maximum value of
three times base salary per annum. Awards may be subject to performance underpins. If the Company does not meet one or more of
the performance underpins over the relevant vesting period, the Remuneration Committee would consider whether it is appropriate
to scale back the level of pay-out under the BSP award. BSP awards made to the Executive Directors in the year ending 30 March2024 will vest in full on the third anniversary of the grant date, subject to continued employment. For BSP awards made to Executive
Directors in years ending before 1 April 2023, one third of the award will vest on the third anniversary of the grant date, one third of
the award will vest on the fourth anniversary of the grant date and the remaining balance of the award will vest on the fifth
anniversary of the grant date, subject to continued employment.
Awards made to senior employees will not be subject to performance conditions or underpins, and will vest in full on the third
anniversary of the grant date, subject to continued employment.
During the year, the fair value charge relating to the BSP awards was £11 million (last year: £9 million) and the following grants weremade under the BSP:
Targets
Date of grantOptions granted

Fair value

Participant group

Performance conditions/underpins

27 July 2023
27 July 2023

838,107
131,178£22.48£22.48

Management
Executive Directors

Continued service
Underpins: Total revenue
ROIC
Brand and sustainability

23 November 2023

33,268£15.04

Management

Continued service

ThresholdMaximum

N/A£3,200m
WACC
Reasonable
progress
N/A

N/A
N/A
N/A
N/A
N/A

The fair values for the above grants are equivalent to the closing price of an ordinary share on the grant date as follows:

Share price at contract commencement date

27 July2023

23 November
2023£22.48£15.04

Obligations under this plan will be met either by market purchase shares, the transfer of treasury shares or by the issue of ordinary
shares of the Company, for which the ESOP trust may be used to facilitate the process.

202

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Financial Statements | Notes to the Financial Statements

28. Employee costs continued
Shares and share options granted to Directors and employees continued
The Burberry Share Plan 2020 (the BSP) continued
Movements in the number of BSP share awards outstanding are as follows:
52 weeks to
30 March
2024

52 weeks to
1 April
2023

2,261,952
1,002,553(362,276)(649,492)
2,252,737
13,2602,239,477

1,701,810
1,253,633(539,186)(154,305)
2,261,952
2,519
2,259,433

Term of the award

Number ofawards as at
30 March
2024

Number ofawards as at
1 April
2023

20 August 2020 – 23 July 2023
19 November 2020 – 19 November 2023
27 July 2021 – 27 July 2024
18 November 2021 – 18 November 2024
27 July 2022 – 27 July 2027
27 July 2022 – 27 July 2025
24 November 2022 – 24 November 2025
27 July 2023 – 27 July 2026
23 November 2023 – 23 November 2026
23 November 2023 – 27 July 2026
Total

–
–
437,233
5,134
104,131669,799
86,928916,244
27,4775,791
2,252,737

636,732
6,933
559,954
6,761
104,131860,51386,928–––2,261,952

Outstanding at start of year
Granted during the year
Lapsed and forfeited during the year
Exercised in the year
Outstanding at end of year
Exercisable at end of year
Vesting after end of year
Share awards outstanding at the end of the year have the following terms:

The weighted average term of the BSP awards is three years, and the weighted average share price at the date of exercise forawards exercised in the period was £21.56.

The Burberry Group plc Executive Share Plan (the ESP)The ESP was approved by the shareholders and adopted by the Company in the year ended 31 March 2015, with the final grant madeon 27 February 2020.
Under the ESP, participants were awarded shares, structured as either nil-cost options, conditional share awards or phantom awards,
up to a maximum value of normally four times base salary per annum. Thresholds and targets for all ESP schemes have now beenassessed and the number of shares awarded has been approved.
Obligations under this plan will be met either by market purchase shares, the transfer of treasury shares or by the issue of ordinary
shares of the Company, for which the ESOP trust may be used to facilitate the process.
During the year, the fair value charge relating to the ESP awards was £nil (last year: £1 million).
Movements in the number of ESP share awards outstanding are as follows:

Outstanding at start of year
Lapsed and forfeited during the year
Exercised during the year
Outstanding at end of year
Exercisable at end of year
Vesting after end of year

52 weeks to
30 March
2024

52 weeks to
1 April
2023

285,906(19,239)(117,276)
149,391
149,391–

1,259,041(736,848)(236,287)
285,906
132,378
153,528

The weighted average first available exercise date for the ESP scheme is 30 March 2024.

203

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Financial Statements | Notes to the Financial Statements

28. Employee costs continued
Shares and share options granted to Directors and employees continued
One-off awards
The Company grants conditional share awards as one-off awards. Some of these awards vest in tranches which vary by award andare dependent upon continued employment over the vesting period.
The fair values for these awards are equivalent to the closing price of an ordinary share on the grant date.
During the year, the fair value charge relating to the one-off awards was £1 million (last year: £5 million).
Movements in the number of one-off share awards outstanding are as follows:

Outstanding at start of year
Granted during the year
Lapsed and forfeited during the year
Exercised during the year
Outstanding at end of year
Exercisable at end of year
Vesting after end of year

52 weeks to
30 March
2024

52 weeks to
1 April
2023

340,749
24,135(4,128)(312,216)
48,54040,8087,732

1,063,048
7,720(537,605)(192,414)
340,749
31,311
309,438

The weighted average first available exercise date for the one-off awards is 19 October 2024, and the latest vesting date is 27 July 2026.
The weighted average share price at the date of exercise for awards exercised in the period was £20.81.

Other schemes
The Group also grants to employees options under the Burberry Group plc ShareSave Plan 2021 (ShareSave), and free shares undera Burberry Group plc Share Incentive Plan (SIP) for employees in the UK, and the Burberry Group plc International Free Share Plan
2021 (IFSP) for employees outside the UK. In the 52 weeks to 30 March 2024 and 1 April 2023, options were granted under
ShareSave with a three-year and five-year vesting period.
Additional awards were granted under the SIP and the IFSP, offering employees awards of ordinary shares in the Company at a £nil
exercise price. All awards vest after three years and the vesting of these share awards is dependent on continued employment overthe vesting period.
The fair value charge for these schemes was £3 million (last year: £4 million).

204

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

29. Acquisition of subsidiaryOn 2 October 2023, Burberry Italy S.R.L., Burberry’s wholly-owned subsidiary, acquired a 100% shareholding in Burberry Tecnica,
S.R.L., from Italian technical outerwear supplier, Pattern SpA, a company incorporated in Italy, for total cash consideration of£19 million. Consideration for this acquisition did not includes any contingent or deferred consideration.
Based in Turin, the activities of the business acquired revolve around the engineering and production of Burberry products.
The acquisition allows the Group to secure capacity, build technical outerwear capabilities and further embed sustainability into
its value chain.
The assets and liabilities recognised as a result of the acquisition are as follows:
Provisional
Fair value£m

Net assets acquired
Acquired intangible assets
Property, plant and equipment
Inventories
Right-of-use assets
Lease liabilities
Employee-related liabilities
Deferred tax liability
Net assets acquired
Goodwill arising on acquisition
Total cost of acquisition

1
1
2
2
(1)
(1)
(1)
3
16
19

No receivables or contingent liabilities were acquired as a result of the acquisition.
The values used in accounting for the identifiable assets and liabilities of the acquisition are provisional in nature as they are still
being determined. If necessary, adjustments will be made to these carrying values and the related goodwill, within 12 months of theacquisition date.
The goodwill arising on the acquisition of £16 million reflects the expected synergies from the vertical integration of engineering andproduction of technical outerwear within the Group’s supply chain, together with the value of the retained workforce. The goodwill
has been allocated to the group of cash generating units which make up the Group’s retail/wholesale operating segment. £13 millionof the goodwill is expected to be deductible for tax purposes, giving rise to an overall tax benefit with an estimated net present valueof approximately £1 million.
The acquired business has made a contribution to Group revenue of £nil and had a negligible impact on Group profit before taxation
since acquisition. If the acquisition had occurred at the beginning of the financial year, the impact on the Group’s revenue and profit
or loss would not have been material.

30. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on
consolidation and are not disclosed in this note. Total compensation in respect of key management, who are defined as theBoard of Directors and certain members of senior management, is considered to be a related party transaction.
The total compensation in respect of key management for the year was as follows:

Salaries, short-term benefits and social security costs1
Share-based compensation (all awards and options settled in shares)
Total

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

7
2
9

9
4
13

1. Pension cash allowance is included within salaries, short-term benefits and social security costs.

The Group donates each year to The Burberry Foundation, an independent charity which meets the criteria to be reported as a related
party in accordance with IFRS. Charitable donations to The Burberry Foundation for the 52 weeks to 30 March 2024 were £2 million(last year: £2 million).
There were no other material related party transactions in the year.

205

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Financial Statements | Notes to the Financial Statements

31. Subsidiary undertakings and investments
In accordance with Section 409 of the Companies Act 2006 a full list of related undertakings as at 30 March 2024, including theircountry of incorporation and percentage share ownership, is disclosed below. Unless otherwise stated, all undertakings areindirectly owned by Burberry Group plc and operate in the country of incorporation. All the subsidiary undertakings have been
consolidated as at 30 March 2024.
Company name

Burberry Pacific Pty Ltd
Burberry (Austria) GmbH
Sandringham Bahrain SPC W.L.L.1
Burberry Antwerp NV
Burberry Brasil Comércio de Artigos de Vestuário e
Acessórios Ltda
Burberry Canada Inc
Burberry (Shanghai) Trading Co., Ltd
Burberry Czech Rep s.r.o.
Burberry France SASU
Burberry (Deutschland) GmbH
Burberry Asia Holdings Limited
Burberry China Holdings Limited
Burberry Asia Limited
Burberry Hungary Kereskedelmi Korlátolt
Felelősségű Társaság
Burberry India Private Limited
Burberry Ireland Investments Unlimited Company

Country/territoryof incorporation

Interest

Holding(%)

RegisteredofficeAustralia
Austria
BahrainBelgiumBrazilOrdinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Quota

100
100
100
100
100

1
2
3
4
5

CanadaMainland China
Czech Republic
FranceGermany
Hong Kong S.A.R., China
Hong Kong S.A.R., China
Hong Kong S.A.R., China
Hungary

Common shares
Equity interest
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares

100
100
100
100
100
100
100
100
100

6
7
8
9
10
11
11
12
13

India
IrelandOrdinary shares
Ordinary A shares
Ordinary B shares
Ordinary shares
Quota
Quota
Quota
Quota
Ordinary shares
Parts

51
100
100
100
100
100
100
100
100
49

14
15

Quota
Ordinary shares
Ordinary (fixed) shares
Ordinary (variable) shares
Ordinary (fixed) shares
Ordinary shares
Ordinary shares
Ordinary shares
Common stock
Participatory share
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Common shares
Common shares

100
100
100
100
100
100
100
49
100
100
100
100
100
100
100
100

Burberry Ireland Limited
Burberry Italy (Rome) S.R.L.
Burberry Italy S.R.L.2
Burberry Tecnica S.R.L
Burberry Manifattura S.R.L.
Burberry Japan K.K.
Burberry Kuwait General Trading Textiles and Accessories
Company \With Limited Liability3
Burberry Macau Limited
Burberry (Malaysia) Sdn. Bhd.
Horseferry México S.A. de C.V.

Macau S.A.R., China
Malaysia
MexicoHorseferry México Servicios Administrativos, S.A. de C.V.
Burberry Netherlands B.V.
Burberry New Zealand Limited
Burberry Qatar W.L.L3
Burberry Korea Limited
Burberry Retail LLC 4
Burberry Saudi Company Limited
Burberry (Singapore) Distribution Company PTE Ltd
Burberry (Spain) Retail S.L.
Burberry (Suisse) SA2
Burberry (Taiwan) Co., Ltd
Burberry (Thailand) Limited

MexicoNetherlands
New Zealand
Qatar
Republic of Korea
Russian Federation
Kingdom of Saudi Arabia
Singapore
Spain
Switzerland
Taiwan Area, China
Thailand206

Ireland
Italy
Italy
Italy
Italy
Japan
Kuwait

16
17
17
18
19
20
21
22
23
24
24
25
26
27
28
29
30
31
32
33
34
35

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

31. Subsidiary undertakings and investments continued
Company nameCountry ofincorporation

Interest

Holding(%)

RegisteredofficeBurberry Turkey Giyim Toptan Ve Perakende Satış
Limited Şirketi
Burberry FZ-LLC
Burberry Middle East LLC3
Burberry (Espana) Holdings Limited
Burberry (No. 7) Unlimited
Burberry (UK) Limited
Burberry Europe Holdings Limited2
Burberry Finance Limited5
Burberry Haymarket Limited2
Burberry Holdings Limited
Burberry International Holdings Limited2
Burberry Latin America Limited
Burberry Limited
Burberry London Limited
Burberrys Limited1
Sweet Street Developments Limited
The Scotch House Limited2
Thomas Burberry Holdings Limited2
Thomas Burberry Limited2, 5Woodrow-Universal Limited2, 5Woodrow-Universal Pension Trustee Limited2, 5Burberry (Wholesale) Limited

TurkeyOrdinary shares

100

36

United Arab Emirates
United Arab Emirates
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United States
United States

Burberry North America, Inc.

United States

100
49
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

37
38
39
39
39
39
39
39
39
39
39
39
39
39
39
39
39
39
39
39
40

Burberry Limited

Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary shares
Ordinary sharesClass X common stock
Class Y common stock
Class X common stock
Class Y common stock
Common stock40
41

1. The Group has an indirect holding of 100% of the issued share capital through a nominee.
2. Held directly by Burberry Group plc.
3. The Group has a 100% share of profits of Burberry Middle East LLC as well as a 100% and majority share of profits in Burberry Middle East LLC’s subsidiaries in Kuwait and
Qatar respectively. The Group has the power to control these companies under the agreements relating to Burberry Middle East LLC.
4. Burberry Retail LLC’s stores have been closed since March 2022.
5. This subsidiary will take the audit exemption allowed under Section 479A of the Companies Act 2006 for the year ended 30 March 2024.

207

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

31. Subsidiary undertakings and investments continued
Ref

Registered office address

1
2
3
4
5

Level 5, 343 George Street, Sydney NSW 2000, Australia
Kohlmarkt 2, A1010 Wien, Austria
Building 2758, Flat no. 1081, Road 4650, Block 346, Manama/Sea Front, Bahrain
Waterloolaan 16, 1000, Brussel, Belgium
City of São Paulo, State of São Paulo, at Rua do Rocio, 350, 3rd Pavement of Condominium Atrium IX, suites No. 32,
28th subdistrict, Vila Olímpia, CEP 04552-000, Brazil
100 King Street West, 1 First Canadian Place, Suite 1600, Toronto ON M5X 1G5, Canada
60th Floor (Actual Floor No.53), Wheelock Square, No. 1717 Nanjing West Road, Jing’an Districts, Shanghai 200040,
People’s Republic of China
Praha 1, Pařížská 11/67, PSČ 11000, Czech Republic
56A rue du Faubourg Saint-Honoré, 75008, Paris, France
Königsallee 50, 40212, Düsseldorf, Germany
Flat /RM 2201-02 & 09-14, 22/F Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
RM 01-02 & 09-14, 22/F Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
H-1068 Budapest Dózsa György út 84. B, Hungary
10th Floor, International Trade Tower, Nehru Place, New Delhi, South East Delhi, Dehli 110019
Suite 9, Bunkilla Plaza, Bracetown Business Park, Clonee, Co. Meath., D15 XR27, Ireland
Suite 9, Bunkilla Plaza, Bracetown Office Park, Clonee, Co. Meath., D15 XR27, Ireland
Via Manzoni n.20, CAP, 20121, Milano, Italy
Via Italia 6/A, 10093 Collegno (TO), Italy
Via delle Fonti n.10, 50018 Scandicci, Italy
5-14 Ginza 2-chome, Chuo-ku, Tokyo, Japan
Hawally, Block 8, Street 276, Plot 9301, Unit No 12, Floor 7, Kuwait
Avenida Dr. Sun Yat Sen, One Central Building, 1st floor, Shops 125-127, Macau
43-2, Plaza Damansara, Jalan Medan Setia 1, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia
Edgar Allan Poe 85-B, Col. Polanco, Delg. Miguel Hidalgo, Mexico City, 11560, Mexico
Pieter Cornelisz. Hooftstraat 50 H, 1071CA Amsterdam
Level 20, HSBC Tower, 188 Quay Street, Auckland, 1010, New ZealandFirst Floor, Building No. 660, Street no. 364, Al Waab, Zone No.54, Al Marikh, Al Rayyan Municipality, Qatar
459, Dosan-daero, Gangnam-gu, Seoul, Republic of Korea
Ulitsa Petrovka, 16, floor 3, Premise I, rooms 47-53, 127051, Moscow, Russian Federation
1st Floor, The Plaza Building, P.O. Box 2392, Riyadh 12244, Kingdom of Saudi Arabia
391B Orchard Road, #15-02/03, Ngee Ann City, 238874, Singapore
Passeig de Gràcia, 56, 08007, Barcelona
Route de Chêne 30A, c/o L&S Trust Services SA, 1208 Genève, Switzerland
5F. No 451 Changchun Rd, Songshan Dist, Taipei City 10547, Taiwan
No.127 Office 25.03; Level 25; Gaysorn Tower; Ratchadamri Road, Lumpini Sub-District; Pathumwan District; 10330 Bangkok; ThailandReşitpaşa Mahallessi Eski Büyükdere Cad. Windowist Tower Sit. No: 26/1 Sariyer/Istanbul, Turkey
Dubai Design District, Premises:, 312, 313, 314 & 315, Floor: 03, Building: 08, Dubai Design District, United Arab Emirates
Dubai Design District, Building 8, Level 3, Unit no 314 and 315 PO Box 83916, Dubai
Horseferry House, Horseferry Road, London, SW1P 2AW, United Kingdom
Corporation Service Company, 80 State Street, Albany, NY, 12207-2543, USA
Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, USA

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

32. Contingent liabilities
The Group is subject to claims against it and to tax audits in a number of jurisdictions which arise in the ordinary course of business.
These typically relate to Value Added Taxes, sales taxes, customs duties, corporate taxes, transfer pricing, payroll taxes, various
contractual claims, legal proceedings and other matters. Where appropriate, the estimated cost of known obligations has been
provided in these financial statements in accordance with the Group’s accounting policies. The Group does not expect the outcomeof current similar contingent liabilities to have a material effect on the Group’s financial position.

208

Burberry Annual Report 2023/24

Financial Statements | Five-Year Summary (UNAUDITED)FIVE-YEAR SUMMARY (UNAUDITED)To end of year

Revenue by channel
RetailWholesale
Retail/Wholesale
LicensingTotal revenue

2020
£m

2021
£m

2022
£m

2023
£m

2024
£m

2,110
476
2,586
47
2,633

1,910
396
2,306
38
2,344

2,273
512
2,785
41
2,826

2,501
543
3,044
50
3,094

2,400
506
2,906
62
2,968

Profit by channel
Retail/Wholesale1
Licensing
Adjusted operating profit1

£m

£m

£m

£m

£m

390
43
433

361
35
396

486
37
523

587
47
634

359
59
418

Segmental analysis of adjusted profit1
Retail/Wholesale gross margin
Retail/Wholesale operating expenses as a percentage of sales
Retail/Wholesale operating margin
Licensing operating margin
Adjusted operating profit margin

%

%

%

%

%

66.8
51.7
15.1
91.9
16.4

69.5
53.8
15.7
90.8
16.9

70.2
52.7
17.5
90.2
18.5

70.0
50.7
19.3
91.9
20.5

67.0
54.6
12.4
94.0
14.1

Summary profit analysis
Adjusted operating profit1
Net finance income/(expense)1
Adjusted profit before taxation1
Adjusting items
Profit before taxation
Taxation
Non-controlling interest
Attributable profit

£m

£m

£m

£m

£m

433
(19)
414
(245)
169
(47)
–
122

396
(30)
366
124
490
(114)
–
376

523
(31)
492
19
511
(114)
(1)
396

634
(21)
613
21
634
(142)
(2)
490

418
(35)
383
–
383
(112)
(1)
270

Retail/Wholesale revenue by product division
Accessories
Women’s
Men’s
Children’s/Other

£m

£m

£m

£m

£m

948
796
715
127

841
653
668
144

1,017
784
807
177

1,125
867
868
184

1,055
860
842
149

Retail/Wholesale revenue by destination
Asia Pacific
EMEIA2
Americas

£m

£m

£m

£m

£m

1,040
961
585

1,203
628
475

1,276
813
696

1,297
1,004
743

1,286
1,017
603

Financial KPIs
Total revenue growth3
Comparable store sales growth3
Adjusted operating profit growth1, 3Adjusted operating profit margin1
Adjusted diluted EPS growth1
Adjusted Group return on invested capital (ROIC)1

%

%

%

%

%

-4
-3
-1
16.4
-4
20.0

-10
-9
-8
16.9
-14
17.0

+23
+18
+38
18.5
+40
24.6

+5
+7
+8
20.5
+30
28.6

–
-1
-25
14.1
-40
15.3

1. Excludes the impact of adjusting items. Refer to note 2r for the Group’s policy on adjusting items.
2. EMEIA comprises Europe, Middle East, India and Africa.
3. Growth rate is year-on-year underlying change, i.e. at constant exchange rates.

209

Burberry Annual Report 2023/24

Financial Statements | Five-Year Summary (UNAUDITED)To end of year

Earnings and dividends
Adjusted earnings per share – diluted1
Earnings per share – diluted
Diluted weighted average number ofordinary shares (millions)
Dividend per share
InterimFinal
To end of year

2020
pence
per share

2021
pence
per share

2022
pence
per share

2023
pence
per share

2024
pence
per share

78.7
29.8

67.3
92.7

94.0
97.7

122.5
126.3

73.9
73.9

409.0

405.1

404.8

388.0

366.2

11.3
–

–
42.5

11.6
35.4

16.5
44.5

18.3
42.7

Net cash flow
Adjusted profit before taxation
Adjusting items
Profit before taxation
Depreciation and amortisation
Employee share scheme costs
Net finance expense
Decrease/(increase) in inventories
Decrease/(increase) in receivables
Increase/(decrease) in payables and provisions
Other cash items
Other non-cash items
Cash flow from operations

2020
£m

2021
£m

2022
£m

2023
£m

2024
£m

414
(245)
169
331
3
20
27
(10)
(84)
–
169
625

366
124
490
277
12
31
21
(39)
(7)
(1)
(107)
677

492
19
511
313
16
32
(22)
(5)
81
–
(17)
909

613
21
634
344
19
23
(10)
(17)
(49)
–
(32)
912

383
–
383
379
16
35
(57)
(32)
(77)
–
18
665

Net interestTax paid
Net cash flow from operations
Capital expenditure
Proceeds from disposal of non-current assets
Payment of lease principal and related cash flows
Free cash flow
Acquisitions
Dividends
Purchase of shares through share buyback
Proceeds from borrowings
Repayment of borrowings
Other
Exchange difference
Total movement in net cash

(19)
(150)
456
(149)
3
(244)
66
(3)
(175)
(151)
300
–
4
9
50

(27)
(58)
592
(115)
27
(155)
349
(4)
–
–
595
(600)
2
(13)
329

(30)
(180)
699
(161)
8
(206)
340
(10)
(219)
(153)
–
–
(4)
7
(39)

(22)
(140)
750
(179)
32
(210)
393
(6)
(203)
(404)
–
–
2
2
(216)

(20)
(139)
506
(208)
–
(235)
63
(19)
(233)
(402)
–
–
1
(9)
(599)

Net cash

887

1,216

1,177

961

362

1. Excludes the impact of adjusting items. Refer to note 2r for the Group’s policy on adjusting items.

210

Burberry Annual Report 2023/24

Financial Statements | Five-Year Summary (UNAUDITED)At end of year

Balance Sheet
Intangible assets
Property, plant and equipment
Right-of-use assets
Inventories
Trade and other receivables
Trade and other payables
Lease liabilities
Taxation (including deferred taxation)
Net cashBorrowings
Other net assets
Net assets
Reconciliation of Adjusted
Group ROIC
Adjusted operating profit1
Adjusted profit effective tax rate1
Adjusted net operating profit after tax1
Net assets
Deduct cash net of overdrafts
Add back borrowings
Add back lease debt
Deduct net tax assets
Operating assets
Add back net liabilities related to adjusting items:
Deferred consideration
Restructuring liabilities/other
Adjusted operating assets
Average adjusted operating assets
Adjusted Group ROIC

2020
£m

2021
£m

2022
£m

2023
£m

2024
£m

247
295
834
451
306
(550)
(1,126)
214
887
(300)
(39)
1,219

237
280
818
402
322
(492)
(1,020)
148
1,216
(297)
(54)
1,560

240
322
880
426
328
(572)
(1,058)
221
1,177
(298)
(49)
1,617

248
376
950
447
359
(553)
(1,123)
229
961
(298)
(57)
1,539

267
406
1,013
507
392
(502)
(1,188)
243
362
(299)
(47)
1,154

2020
£m

2021
£m

2022
£m

2023
£m

2024
£m

433
22.3%
336

396
25.4%
295

523
22.2%
407

634
22.2%
493

418
29.2%
296

1,219
(887)
300
1,126
(214)
1,544

1,560
(1,216)
297
1,020
(148)
1,513

1,617
(1,177)
298
1,058
(221)
1,575

1,539
(961)
298
1,123
(229)
1,770

1,154
(362)
299
1,188
(243)
2,036

18
253
1,815
1,686
20.0%

17
127
1,657
1,736
17.0%

8
63
1,646
1,651
24.6%

5
30
1,805
1,726
28.6%

5
23
2,064
1,935
15.3%

1. Excludes the impact of adjusting items. Refer to note 2r for the Group’s policy on adjusting items.

211

Burberry Annual Report 2023/24

Financial Statements | Company Balance Sheet

COMPANY BALANCE SHEET
As at
30 March
2024
£m

As at
1 April
2023
£m

D

1,572
1,572

1,553
1,553

E
E

655
–
–
1
656

301
288
3
–
592

Creditors – amounts falling due within one year
Derivative liabilities maturing within one year
Net current assets
Total assets less current liabilities

F

(102)
(1)
553
2,125

(67)
–
525
2,078

Creditors – amounts falling due after more than one year
Borrowings
Net assets

F
G

(61)
(299)
1,765

(129)
(298)
1,651

I

–
231
1
1,533
1,765

–
230
1
1,420
1,651

Note

Fixed assets
Investments in subsidiaries
Current assets
Trade and other receivables – amounts falling due after more than one year
Trade and other receivables – amounts falling due within one year
Derivative assets maturing within one year
Cash at bank and in hand

EquityCalled up share capital
Share premium account
Capital reserve
Profit and loss accountTotal equity

Profit for the year was £732 million (last year: £572 million). The Directors consider that, at 30 March 2024, £732 million (last year:£718 million) of the profit and loss account is non-distributable.
The financial statements on pages 212 to 220 were approved and authorised for issue by the Board on 14 May 2024 and signed on its
behalf by:

Jonathan Akeroyd
Chief Executive Officer

212

Burberry Annual Report 2023/24

Financial Statements | Company Statement of Changes in Equity

COMPANY STATEMENT OF CHANGES IN EQUITY

NoteBalance as at 2 April 2022
Profit for the year
Total comprehensive income for the year
Employee share incentive schemes
Equity share awards
Exercise of share options
Purchase of own shares
Share buyback
Held by ESOP trusts
Dividends paid in the year
Balance as at 1 April 2023
Profit for the year
Total comprehensive income for the year
Employee share incentive schemes
Equity share awards
Exercise of share options
Purchase of own shares
Share buyback
Dividends paid in the year
Balance as at 30 March 2024

I
J

Called up sharecapital£m

Share premium
account£m

Capital reserve£m

Profit and loss
account£m

Total
equity
£m

–
–
–

227
–
–

1
–
–

1,437
572
572

1,665
572
572

–
–

–
3

–
–

19
–

19
3

–
–
–
–
–
–

–
–
–
230
–
–

–
–
–
1
–
–

(404)
(1)
(203)
1,420
732
732

(404)
(1)
(203)
1,651
732
732

–
–

–
1

–
–

16
–

16
1

–
–
–

–
–
231

–
–
1

(402)
(233)
1,533

(402)
(233)
1,765

213

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

A. Basis of preparation
Burberry Group plc (the Company) is the parent Company of the Burberry Group. Burberry Group plc is a public company which
is limited by shares and is listed on the London Stock Exchange. The Company’s principal business is investment and it isincorporated and domiciled in the UK. The Company is registered in England and Wales and the address of its registered office isHorseferry House, Horseferry Road, London, SW1P 2AW. The Company is the sponsoring entity of The Burberry Group plc ESOP Trustand The Burberry Group plc SIP Trust (collectively known as the ESOP trusts). These financial statements have been prepared byincluding the ESOP trusts within the financial statements of the Company. The purpose of the ESOP trusts is to purchase shares of
the Company in order to satisfy Group share-based payment arrangements.
Burberry Group plc and its subsidiaries (the Group) is a global luxury goods manufacturer, retailer and wholesaler. The Group also
licenses third parties to manufacture and distribute products using the ‘Burberry’ trademarks. All of the companies which comprise
the Group are controlled by the Company directly or indirectly. The consolidated financial statements of the Group have been
prepared in accordance with the requirements of the Companies Act 2006 and UK-adopted International Accounting Standards.
These consolidated financial statements have been prepared for public use and can be obtained at Horseferry House, Horseferry
Road, London, SW1P 2AW.
The financial statements of the Company have been prepared in accordance with Financial Reporting Standard 101 ‘Reduced
Disclosure Framework’ (FRS 101). The financial statements have been prepared on a going concern basis under the historical costconvention, as modified by derivative financial assets and derivative financial liabilities measured at fair value through profit or loss,
and in accordance with the Companies Act 2006. As permitted by Section 408 of the Companies Act 2006, the Company has notpresented its own Income Statement.
The preparation of the financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also
requires management to exercise judgement in applying the Company’s accounting policies (refer to note C).

Financial Reporting Standard 101 – reduced disclosure exemptions
The Company has taken advantage of the applicable disclosure exemptions permitted by FRS 101 in the financial statements, which
are summarised below:
Standard

Disclosure exemption

IFRS 2, ‘Share-based Payments’• Para 45(b) – disclosure of number and weighted average exercise price ofshare options• Para 46–49 – disclosure of valuation techniques and inputs used for fair value
measurement of options• Para 50–52 – disclosure of the effect of share-based payment transactions on theentity’s profit and loss for the period.
• Full exemption• para 91-99 – disclosure of valuation techniques and inputs used for fair value
measurement of assets and liabilities• para 10(d) – statement of cash flows• para 10(f) – a statement of financial position as at the beginning of the preceding
period when an entity applies an accounting policy retrospectively or makes aretrospective statement of items in its financial statements, or when it reclassifies
items in its financial statements• para 16 – statement of compliance with all IFRS
• para 38 – present comparative information in respect of paragraph 79(a)(iv) of IAS 1• para 38A – requirement for minimum of two primary statements, including
cash flow statements• para 38B-D – additional comparative information• para 111 – cash flow statement information• para 134-136 – capital management disclosures• Full exemption• para 30-31 – requirement for the disclosure of information when an entity has notapplied a new IFRS that has been issued but is not yet effective• para 17 – key management compensation• The requirements to disclose related party transactions entered into between two
or more members of a group, provided that any subsidiary which is a party to thetransaction is wholly owned by such a member• para 134(d)-134(f) and 135(c)-135(e)IFRS 7, ‘Financial Instruments: Disclosures’
IFRS 13, ‘Fair Value Measurement’
IAS 1, ‘Presentation of the Financial Statements’IAS 7, ‘Statement of Cash Flows’
IAS 8, ‘Accounting Policies, Changes
in Accounting Estimates and Errors’
IAS 24, ‘Related Party Disclosures’IAS 36, ‘Impairment of Assets’214Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

A. Basis of preparation continued
Going concern
The Company financial statements are prepared on a going concern basis as set out in note 1 of the Group consolidated financial
statements of Burberry Group plc.

New standards, amendments and interpretations adopted in the period
A number of new amendments to standards are effective for the financial period commencing 2 April 2023 but they do not have amaterial impact on the financial statements of the Company.

Standards not yet adopted
Certain new accounting standards and amendments to standards have been published that are not mandatory for the 52 weeks to
30 March 2024 and have not been early adopted by the Company as set out in note 1 of the Group consolidated financial statementsof Burberry Group plc.

B. Accounting policies
The following material accounting policies have been applied in the preparation of these financial statements. These policies havebeen consistently applied to all the years presented, unless otherwise stated:

Share schemes
The Group operates a number of equity-settled share-based compensation schemes under which services are received from
employees (including Executive Directors) as consideration for equity instruments of the Company. Instruments used include awards
and options. The cost of the share-based incentives is measured with reference to the fair value of the equity instruments awarded at
the date of grant. Appropriate option pricing models, including Black-Scholes, are used to determine the fair value of the option
awards made.
The fair value takes into account the impact of any market performance conditions, but the impact of non-market performance
conditions is not considered in determining the fair value on the date of grant. Vesting conditions which relate to non-market
conditions are allowed for in the assumptions used for the number of share awards or options expected to vest. The estimate of thenumber of options expected to vest is revised at each balance sheet date.
In some circumstances, employees may provide services in advance of the grant date. The grant date fair value is estimated for the
purpose of recognising the expense during the period between the service commencement period and the grant date.
The grant by the Company of share awards or options over its equity instruments to employees of subsidiary undertakings in theGroup is treated as a capital contribution. In the Company’s financial statements, the cost of the share-based incentives isrecognised over the vesting period of the awards as an increase in investment in subsidiary undertakings, with a corresponding
increase in equity. Where amounts are received from Group companies in relation to equity instruments granted to the employees ofthe subsidiary undertaking, the amount is derecognised from investments in Group companies.
When share awards or options are exercised, they are settled either via issue of new shares in the Company, or through shares heldin the ESOP trusts, depending on the terms and conditions of the relevant scheme. For new shares issued, the proceeds received
from the exercise of share options, net of any directly attributable transaction costs, are credited to share capital and share premium
accounts. When ESOP shares are used, any difference between the exercise price and their cost is recognised in retained earnings.

Dividend distribution
Dividend distributions to Burberry Group plc’s shareholders are recognised as a liability in the year in which the dividend becomes acommitted obligation. Final dividends are recognised when they are approved by the shareholders. Interim dividends are recognised
when paid.

Investments in subsidiaries
Investments in subsidiaries are stated at cost, less any provisions to reflect impairment in value.

Impairment of investments in subsidiaries
Investments in subsidiaries are not subject to amortisation and are tested annually for impairment. An impairment loss is recognised
for the amount by which the carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fairvalue less costs to sell and value-in-use. For the purpose of assessing impairment, assets are grouped at the lowest level for which
there are separately identifiable cash flows (cash generating units). Investments for which an impairment has been previously
recognised are reviewed for possible reversal of impairment at each reporting date.

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Financial Statements | Notes to the Company Financial Statements

B. Accounting policies continued
Taxation
Tax expense represents the sum of the current tax expense and the deferred tax charge.
Current tax is based on taxable profit for the year. Taxable profit differs from net profit because it excludes items of income
or expense which are taxable or deductible in other years and it further excludes items which are never taxable or deductible.
The current tax liability is calculated using tax rates which have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. However, if the temporary difference arises from the initialrecognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences, no deferred tax
will be recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by thebalance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred tax liability
is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which thetemporary differences can be utilised.

Financial instruments
A financial instrument is initially recognised at fair value on the Balance Sheet when the Company becomes a party to the contractual
provisions of the instrument. A financial asset is derecognised when the contractual rights to the cash flow expire or substantially all
risks and rewards of the asset are transferred. A financial liability is derecognised when the obligation specified in the contract isdischarged, cancelled or expires.
At initial recognition, all financial liabilities are stated at fair value. Subsequent to initial recognition, all financial liabilities are stated
at amortised cost using the effective interest rate method, except for derivatives which are held at fair value and which are classified
as fair value through profit and loss. Financial assets are classified as either amortised cost or fair value through profit and loss
depending on their cash flow characteristics. Assets with cash flows that represent solely payments of principal and interest aremeasured at amortised cost. The fair value of the financial assets and liabilities held at amortised cost approximate their carrying
amount due to the use of market interest rates.
The Company classifies its instruments in the following categories:
Financial instrument category

Cash and cash equivalents
Trade and other receivables
Trade and other payables
Borrowings
Equity swap contracts

Note

E
F
G

Classification

Measurement

Amortised cost
Amortised cost
Other financial liabilities
Other financial liabilities
Fair value through profit and loss

Amortised cost
Amortised cost
Amortised cost
Amortised cost
Fair value through profit and loss

The Company’s primary categories of financial instruments are listed below:

Cash at bank and in handOn the Balance Sheet, cash at bank and in hand comprises cash held with banks. Cash at bank and in hand held at amortised cost is
subject to impairment testing each period end.

Trade and other receivables
Trade and other receivables are included in current assets. Trade and other receivables with maturities greater than 12 months after
the balance sheet date are classified in trade and other receivables amounts falling due after more than one year. The assessment of
maturities of loan receivables takes into consideration any intention to renew the loan, where the loan is provided under a facility
which has a maturity of more than 12 months from the balance sheet date. Most receivables are held with the objective to collect thecontractual cash flows and are therefore recognised initially at fair value and subsequently measured at amortised cost using theeffective interest rate method, less provision for impairment. A provision for the expected loss on receivables is established atinception. This is modified when there is a change in the credit risk. The amount of the movement in the provision is recognised in the
Income Statement.

Trade and other payables
Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.
Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method.

216

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Financial Statements | Notes to the Company Financial Statements

B. Accounting policies continued
Financial instruments continued
Borrowings
Borrowings are recognised initially at fair value, inclusive of transaction costs incurred. Borrowings are subsequently stated atamortised cost and the difference between the proceeds (net of transaction costs) and the redemption value is recognised in the
Income Statement over the period of the borrowings using the effective interest rate method. Borrowings are classified in creditors
amounts falling due within one year unless the Company has an unconditional right to defer settlement of the liability for at least
12 months after the balance sheet date.

Derivative instruments
The Company uses equity swap contracts to economically hedge its exposure to fluctuations in the Company’s share pricewhich impacts the social security costs payable by Group companies in relation to share-based compensation schemes.
The equity swap contracts are initially recognised at fair value at the trade date and classified as fair value through profit and loss.
All subsequent changes in fair value are recognised in the Income Statement up to the maturity date.
Cash settled equity swaps are classified as fair value through profit and loss.

Foreign currency translation
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which theCompany operates (the functional currency). The financial statements are presented in sterling which is the Company’s functional
and presentation currency.

Transactions in foreign currencies
Transactions denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the dateof the transaction. Monetary assets and liabilities denominated in foreign currencies, which are held at the year end, are translated
into the functional currency at the exchange rate ruling at the balance sheet date (closing rate). Exchange differences on monetary
items are recognised in the Income Statement in the period in which they arise.

Called up share capital
Called up share capital is classified as equity. Incremental costs directly attributable to the issue of new shares or options are shownin equity as a deduction, net of tax, from the proceeds.
Where the Company purchases its own equity share capital (treasury shares), the consideration paid, including any directly
attributable incremental costs, is deducted from equity attributable to owners of the Company until the shares are cancelled,
reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly
attributable incremental transaction costs and the related income tax effects, is included in equity attributable to owners of
the Company.

C. Key sources of estimation uncertainty and judgements
Key sources of estimation uncertainty
Preparation of the financial statements in conformity with FRS 101 requires that management make certain estimates andassumptions that affect the reported revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. If in the
future such estimates and assumptions, which are based on management’s best estimates at the date of the financial statements,
deviate from actual circumstances, the original estimates and assumptions will be updated as appropriate in the period in which thecircumstances change.
Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. There were no key sources of estimation uncertainty for the 52 weeks to
30 March 2024 and 1 April 2023.

Key judgements in applying the Company’s accounting policies
Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts
recognised in the Company’s financial statements. Further details of the Company’s accounting policies are provided in note B.
There were no key judgements arising in the current year or prior year that have a significant impact on the amounts recognised in
the Company’s financial statements for the 52 weeks to 30 March 2024 and 1 April 2023.

217

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Financial Statements | Notes to the Company Financial Statements

D. Investments in subsidiaries£m

As at 1 April 2023
Additions
Impairment charges
As at 30 March 2024

1,553
22
(3)
1,572

The Company has reviewed the recoverable value of its investments to identify if there is any indication of impairment of the carrying
value. Where applicable, the value in use has been estimated using management’s best estimates of future cash generation of
its investments.
The Company has not impaired the carrying value of its investments, apart from a £3 million impairment charge in relation to
Burberrys Limited, as their cash generation in the long-term is considered sufficient to support the carrying value. The subsidiary
undertakings and investments of the Burberry Group are listed in note 31 of the Group financial statements.

E. Trade and other receivables
As at
30 March
2024
£m

As at
1 April2023£m

Amounts owed by Group companies
Prepayments
Trade and other receivables – amounts falling due after more than one year

654
1
655

300
1
301

Amounts owed by Group companies
Trade and other receivables – amounts falling due within one year
Total trade and other receivables

–
–
655

288
288
589

All amounts owed by Group companies are interest bearing and unsecured.
Included within amounts owed by Group companies falling due after more than one year are interest bearing loans receivable of£300 million with a facility maturity date of 21 September 2025, and £354 million with a facility maturity date of 22 February 2029.
The interest rates applied to these loans are 1.125% and SONIA +0.9%, respectively.
The Company’s impairment policies and the calculation of the loss allowances under IFRS 9 are detailed in note H.

F. Creditors

Amounts owed to Group companies
Creditors – amounts falling due after more than one year

Amounts owed to Group companies
Other payables
Creditors – amounts falling due within one year
Total creditors

As at
30 March
2024
£m

As at
1 April
2023
£m

61
61

129
129

As at
30 March
2024
£m

As at
1 April
2023
£m

102
–
102
163

66
1
67
196

Amounts owed to Group companies falling due after more than one year include interest bearing loans of £61 million (last year:£129 million). The interest rate earned is set annually and was based on EURIBOR. The loan is unsecured and repayable on
17 June 2025.
Amounts owed to Group companies falling due within one year include interest bearing loans of £73 million repayable on 17 June
2024 (last year: £nil). The interest rate earned is set annually and was based on SONIA plus adjustment spread of +0.9% at the mostrecent update. The remaining amounts of £29 million are unsecured, interest free and repayable on demand (last year: £66 million).

218

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

G. Borrowings
On 21 September 2020, Burberry Group plc issued medium term notes with a face value of £300 million and 1.125% coupon maturing
on 21 September 2025 (the sustainability bond). Proceeds from the sustainability bond have been used by the Group to financeprojects which support the Group’s sustainability agenda. There are no financial penalties for not using the proceeds as anticipated.
Interest on the sustainability bond is payable semi-annually. The carrying value of the bond at 30 March 2024 is £299 million(last year: £298 million); all movements on the bond are non-cash. The fair value of the bond at 30 March 2024 is £281 million(last year: £273 million).

H. Credit risk
The Company’s principal financial instruments comprise cash, borrowings, trade and other receivables and trade and other payables
arising directly from operations.

Trade and other receivables
The trade and other receivables balance comprises intercompany loans with companies within the Group. These Group companies
are assessed at each reporting date as to their ability to repay outstanding balances. The amounts owed by Group companies at
30 March 2024 comprise £654 million owed by Burberry Limited, and £nil owed by other Group companies (last year: £587 million
owed by Burberry Limited, and £1 million owed by other Group companies).
The counterparty credit risk of trade and other receivables is reviewed on a regular basis and assessed for impairment as follows:
At inception the receivable is recorded net of expected 12-month credit losses. If a significant increase in the credit risk occurs
during the life, credit losses are recorded in the profit and loss account and the effective interest is calculated using the grosscarrying amount of the asset. If a loss event occurs, the effective interest is calculated using the amortised cost of the asset net ofany credit losses.
The Company’s most significant debtor, Burberry Limited, is the holder of the Burberry brand and the main operating company of theGroup. Based on its liquidity and expected cash generation, the expected 12 months credit loss for Burberry Limited trade and otherreceivables is not considered to be significant. As a result, no impairment has been recorded for amounts owed by Group companies
as at 30 March 2024.

Other financial assets
With respect to credit risk arising from other financial assets, which comprise cash and certain other receivables, the Company’s
exposure to credit risk arises from the default of the counterparty with a maximum exposure equal to the carrying value of these
instruments. The Company has policies that limit the amount of credit exposure to any financial institution and only deposits fundswith independently rated financial institutions with a minimum rating of ‘A’, other than where required for operational purposes.

I. Called up share capital
Allotted, called up and fully paid share capital

Ordinary shares of 0.05p (last year: 0.05p) each
As at 1 April 2023
Allotted on exercise of options during the year
Cancellation of shares
As at 30 March 2024

Number£m

384,267,928
51,904(20,504,089)
363,815,743

0.2
–
–
0.2

The Company has a general authority from shareholders, renewed at each Annual General Meeting, to repurchase a maximum of 10%
of its issued share capital. During the 52 weeks to 30 March 2024, the Company entered into agreements to purchase, at fair value, atotal of £400 million of its own shares, excluding stamp duty and fees, through two share buyback programmes of £200 million each(last year: two share buyback programmes of £200 million each). Both programmes were completed during the year.
The cost of own shares purchased by the Company, as part of a share buyback programme, is offset against the profit and loss
account, as the amounts paid reduce the profits available for distribution by the Company. When shares are cancelled, a transfer
is made from the profit and loss account to the capital reserve, equivalent to the nominal value of the shares purchased andsubsequently cancelled. In the 52 weeks to 30 March 2024, 20.5 million shares were cancelled (last year: 21.1 million shares).
As at 30 March 2024, the Company held 5.2 million treasury shares (last year: 6.1 million), with a market value of £63 million (lastyear: £157 million) based on the share price at the reporting date. The treasury shares held by the Company are related to the sharebuyback programme completed during the 53 weeks to 2 April 2022. During the 52 weeks to 30 March 2024, 0.9 million treasury
shares were transferred to ESOP trusts (last year: 2.3 million). During the 52 weeks to 30 March 2024, no treasury shares werecancelled (last year: none).

219

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

I. Called up share capital continued
The cost of shares purchased by ESOP trusts are offset against the profit and loss account, as the amounts paid reduce the profits
available for distribution by the Company. As at 30 March 2024, the cost of own shares held by ESOP trusts and offset against the
profit and loss account is £34 million (last year: £42 million). As at 30 March 2024, the ESOP trusts held 1.9 million shares (last year:
2.3 million) in the Company, with a market value of £23 million (last year: £60 million). In the 52 weeks to 30 March 2024 the ESOP
trusts and the Company have waived their entitlement to dividends.

J. Dividends

Prior year final dividend paid 44.5p per share (last year: 35.4p)
Interim dividend paid 18.3p per share (last year: 16.5p)
Total

52 weeks to
30 March2024£m

52 weeks to
1 April
2023
£m

167
66
233

140
63
203

A final dividend in respect of the 52 weeks to 30 March 2024 of 42.7p (last year: 44.5p) per share, amounting to £151 million, hasbeen proposed for approval by the shareholders at the Annual General Meeting subsequent to the balance sheet date. The final
dividend has not been recognised as a liability at the year end and will be paid on 2 August 2024 to the shareholders on the registerat the close of business on 28 June 2024. The ex-dividend date is 27 June 2024 and the final day for dividend reinvestment plan
(DRIP) elections is 12 July 2024.

K. Financial guarantees
On 26 July 2021, the Group entered into a £300 million multi-currency sustainability-linked revolving credit facility (RCF) with a
syndicate of banks, maturing on 26 July 2026. There were no drawdowns or repayments of the RCF during the current or previous
year and, at 30 March 2024, there were no outstanding drawings.
The Group is in compliance with the financial and other covenants within the facility and has been in compliance throughout thefinancial period.
The companies acting as guarantor to the facility consist of Burberry Group plc, Burberry Limited, Burberry Asia Limited, Burberry(Wholesale) Limited (US) and Burberry Limited (US). Based on the liquidity and expected cash generation of Burberry Limited, theexpected credit loss in respect of these financial guarantees, as at 30 March 2024, is not considered to be significant. As a result,no liability has been recorded (last year: £nil).
A potential liability may arise in the future if one of the Group members defaults on these loan facilities. Each guarantor,
including Burberry Group plc, would be liable to cover the amounts outstanding, including principal and interest elements.

L. Audit fees
The Company has incurred audit fees of £0.1 million for the current year which are borne by Burberry Limited (last year: £0.1 million).

M. Employee costs
The Company has no employees and therefore no employee costs are included in these financial statements for the 52 weeks to
30 March 2024 (last year: £nil).

220

Burberry Annual Report 2023/24

Shareholder Information

SHAREHOLDER INFORMATION
General shareholder enquiries
Enquiries relating to shareholdings, such as the transfer
of Shares, change of name or address, lost Share certificatesor dividend cheques, should be referred to the Company’s
registrar at:
Equiniti
Aspect House
Spencer Road, Lancing, West Sussex, BN99 6DA
Website: www.shareview.co.uk

American Depositary Receipts
We have a sponsored Level 1 American Depositary Receipt(ADR) programme to enable US investors to purchase ADRs
in US Dollars. Each ADR represents one Share.
For queries relating to ADRs in Burberry, please use thefollowing contact details:
BNY Mellon Shareowner Services
P.O. BOX 43006 Providence, RI 02940-3078, USA
Tel: toll free within the USA: +1 888 269 2377
Tel: international: +1 201 680 6825
Email enquiries: shrrelations@cpushareownerservices.com
Website: www.mybnymdr.com

Managing your shares online
Shareholders and employees can manage their Burberry
holdings online by registering with Shareview, a secure online
platform provided by Equiniti. Registration is a straightforward
process and allows shareholders to:

Website
The investor section of Burberry Group plc’s website,
Burberryplc.com, contains a wide range of information including:• regulatory news
• Share price information• dividend history, Share analysis and an investment calculator• financial results announcements• frequently asked questions• financial calendar
It is also possible to sign up to receive email alerts for RNS
news and press releases relating to Burberry Group plc at
www.burberryplc.com/en/alerts.html.

Duplicate accounts
Shareholders who have more than one account due toinconsistency in account details may avoid duplicate mailings
by contacting Equiniti and requesting the amalgamation of theirBurberry Share accounts.

Burberry Share dealing
Burberry Shares can be traded through most banks, building
societies or stockbrokers. Equiniti offers a telephone andinternet dealing service. Terms and conditions and detailsof the commission charges are available on request.
For telephone dealing, please telephone 0345 603 7037
between 8.00am and 4.30pm, Monday to Friday, and forinternet dealing visit www.shareview.co.uk/dealing.

• access information on their shareholdings, including Sharebalance and dividend information• sign up for electronic shareholder communications• buy and sell Shares• update their records following a change of address• have dividends paid into their bank account• vote by proxy online in advance of general meetingsof the Company

Shareholders will need their reference number, which can befound on their Burberry Share certificate.

Burberry encourages shareholders to sign up for electronic
communication as it allows information to be disseminatedquickly and efficiently and also reduces paper usage, whichmakes a valuable contribution to our global footprint.

The voting results for the 2024 AGM will also be accessible
on Burberryplc.com shortly after the meeting.

Annual General Meeting (AGM)
Our AGM will be held at 10:30am on Tuesday 16 July 2024 at
Conrad London St. James, 22-28 Broadway, London SW1H 0BH.
The Notice of Meeting, which includes details of the businessto be conducted at the meeting, is available on our Company
website, Burberryplc.com.

Our privacy policy
Please see the privacy policy on https://www.burberryplc.com/
en/investors/shareholder-centre/shareholder-privacy-notice.
html for details on how Burberry collects and uses shareholder
personal information.

221

Burberry Annual Report 2023/24

Shareholder Information

Dividends

Electronic communication

An interim dividend for FY 2023/24 of 18.3p per Share was paidon 26 January 2024. A final dividend of 42.7p per Share has
been proposed and, subject to approval at the AGM on 16 July
2024, will be paid according to the following timetable:

Shareholders may at any time choose to receive all shareholder
documentation in electronic form via the internet, rather thanin paper format. Shareholders who decide to register for thisoption will receive an email each time a shareholder document
is published on the internet. Shareholders who wish to receive
documentation in electronic form should register online atwww.shareview.co.uk.

Ex-dividend date:

27 June 2024

Final dividend record date:

28 June 2024

Deadline for return of Dividend
Reinvestment Plan (DRIP) mandate forms:

12 July 2024

Final dividend payment date:2 August 2024

The ADR local payment date will be approximately fivebusiness days after the proposed dividend payment date forordinary shareholders.
Dividends can be paid by BACS directly into a UK bank account,with the dividend confirmation being sent to the shareholder’saddress. This is the easiest way for shareholders to receive
dividend payments and avoids the risk of lost or out-of-datecheques. A dividend mandate form is available from Equiniti
or online at www.shareview.co.uk/info/directdividends. If you
are a UK taxpayer, please note that you are eligible for a taxfree dividend allowance in each tax year (£500 in the tax year
from 6 April 2024 to 5 April 2025). See: https://www.gov.uk/
government/publications/reduction-of-the-dividend-allowance/
income-tax-reducing-the-dividend-allowance
Any dividends received above this amount will be subject
to taxation. Dividends paid on Burberry Shares held within
pensions and Individual Savings Accounts (ISAs) willcontinue to be tax-free. Further information can be foundat www.gov.uk/tax-on-dividends.

Dividends payable in foreign currencies
Equiniti is able to pay dividends to shareholder bank accounts
in over 30 currencies worldwide through the Overseas Payment
Service. An administrative fee will be deducted from eachdividend payment. Further details can be obtained from Equiniti
or online at www.shareview.co.uk/info/ops.

Dividend Reinvestment Plan (DRIP)
The DRIP enables shareholders to use their dividends to buy
further Burberry Shares. Full details of the DRIP can be obtained
from Equiniti or online at www.shareview.co.uk/info/drip.

222

Equiniti offers a range of shareholder information and services
online at www.shareview.co.uk.

Financial calendar
AGM:

16 July 2024

First quarter trading update:19 July 2024

Interim results announcement:

November 2024

Third quarter trading update:

January 2025

Preliminary results announcement:

May 2025

Registered office
Burberry Group plc
Horseferry House
Horseferry Road
London SW1P 2AW
Registered in England and Wales
Registered number 03458224

ShareGift
Shareholders with a small number of shares, the value of
which makes them uneconomical to sell, may wish to consider
donating their shares to charity through ShareGift, a donation
scheme operated by The Orr Mackintosh Foundation.
A ShareGift donation form can be obtained from Equiniti.
Further information is available at www.sharegift.org or bytelephone on 020 7930 3737.

Burberry Annual Report 2023/24

Tips on protecting your information• Keep any documentation that contains your shareholder
reference number in a safe place and shred any
unwanted documentation• Inform our registrar, Equiniti, promptly when you
change address• Be aware of dividend payment dates and contact Equiniti
if you do not receive your dividend cheque or, better still,
make arrangements to have the dividend paid directly into
your bank account• Consider holding your shares electronically in a CREST
account via a nominee

Unauthorised brokers (boiler room scams)
Shareholders are advised to be very wary of any unsolicitedadvice, offers to buy shares at a discount, or offers of freecompany reports. These are typically from overseas-based‘brokers’ who target UK shareholders, offering to sell them
what often turn out to be worthless or high-risk shares.
These operations are commonly known as boiler rooms.
If you receive any unsolicited investment advice, obtain thecorrect name of the person and organisation, and check thatthey are properly authorised by the FCA before getting involved.
This can be done by visiting www.fca.org.uk/register/.
If you deal with an unauthorised firm, you will not be eligible toreceive payment under the Financial Services Compensation
Scheme if things go wrong.
If you think you have been approached by an unauthorised firm,
you should contact the FCA consumer helpline on 0800 111 6768
from the UK, or +44 207 066 1000 from outside the UK.
More detailed information can be found on the FCA website atwww.fca.org.uk/consumers/protect-yourself/unauthorised-firms.

223

Pages 1-224 are printed on Revive Offset which is made from 100% de-inked pulp recycled fibre. The cover of the report is
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Disclaimer: The purpose of this Annual Report is to provide information to the members of Burberry Group plc. This document contains certain statementswith respect to the operations, performance and financial condition of the Group including among other things, statements about expected revenues, margins,earnings per share or other financial or other measures. Forward-looking statements appear in a number of places throughout this document and include
statements regarding our intentions, beliefs or current expectations and those of our officers, Directors and employees concerning, amongst other things,
our results of operations, financial condition, liquidity, prospects, growth, strategies, the business we operate and climate change, nature, circular economy andbroader sustainability-related targets and activities. These statements inherently involve uncertainty and are subject to a number of risks since future events andcircumstances can cause actual results and developments to differ materially from those anticipated and may not entirely be within our control. The forward-looking
statements reflect knowledge and information available at the date of preparation of this document and unless otherwise required by applicable law the Company
undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast. All members,
wherever located, should consult any additional disclosures that the Company may make in any regulatory announcements or documents which it publishes.
The Company and its Directors accept no liability to third parties in respect of this document save as would arise under law of England and Wales. This document
does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares, in the UK, or in the USA, or under
the USA Securities Act 1933 or any other jurisdiction.

www.Burberryplc.com